Financial markets eyes heading today toward the most important event which is the USA presidential election which may face the first president woman in the history of the united state.
The most important at this race that both candidates declared their intentions toward the coming monetary policy they are seeking to adopt, where Hilary Clinton seeking to continue her Colleague president Barak Obama policy which mean higher interest rate at near future, which in case if she win at this race will expect higher US Dollar.
While Mr. Donald Trump the republican candidate already expressed his intentions toward lower interest rate with around 500 Billion Dollars as easing monetary policy, which in case if he win may drive US Dollar lower.
And so higher liquidity with high volatility may hit markets as presidential race go on.
Although the U.S constitution lays out just three requirements to be eligible to become president:
1- You must be at least 35 years old 2- have lived in the U.S. for at least 14 years 3- and be a natural-born citizen.
Although those 3 simple conditions the Americans have the longest, most expensive and most complex system of electing a head of state in the world, and after all this efforts, debates and conventions, the person who get the most votes can still lose.
The reason for that is the mechanisms of the U.S presidential election which as follow:
The U.S election depends in what called the Electoral College, which is a winner-take-all system, where a number of points given to each state depending of numbers of Members of the House Of Representatives for each state in addition of numbers of Senators, where a given 1 point for each Member of House of Representative & 2 points for each senator, and so the total points equal to 538 points and the candidate who get 270 points win the race.
And so Americans people on each state head for Popular Vote for each candidate, while Electoral College dose vote to choose the coming President, which mean that some state may Popular Vote to one candidate while the members of Electoral College for that state go to vote for another candidate.
While there is no low prevents Electoral College from doing so, in most cases they go faithful and vote for the candidate that the majority of the state have chosen, while there is only 24 states do punishments against those members of Electoral College who given votes against the majority of the state’s population.
And the candidate of win the vote of the members of electoral College of that state win its points, and the candidate who collect 270 points win the Presidential race.
Incase that no one from candidates collect those 270 points, the President chosen according to U.S constitutional amendment No.12 done by the House Of representative vote, where at this vote consider one vote for each state.