Key Factors Influencing the Forex Market During Elections Economic Policies:Trump's economic policies, such as protectionist trade policies, can create uncertainty in global trade, leading to a stronger US dollar. Market Sentiment and Uncertainty: Elections often introduce significant uncertainty, leading to increased volatility in the Forex market. Interest Rates and Monetary Policy: The US Federal Reserve's interest rates directly affect the value of the US dollar, and Trump's presidency has been known to influence market expectations about future monetary policy .