Besides a busy economic calendar, politics are once again beginning to grow in importance, especially in the United States. Because the US is the largest economy in the world, and the country with the most soft power, the developments there tend to resonate all across the global markets. Thus, being familiar with the general situation there is helpful to traders.
Right now the most important political event is the election of a Democrat who will run against Donald Trump in the presidential elections in November. Registered Democrat voters will begin casting their votes in early February, but the race still seems close, with three candidates currently at the top.
Recently, Sen. Bernie Sanders took the lead in the polls. Known for his progressive approach to politics, Sanders was also one of the two main contenders in the previous elections, where he lost to Hillary Clinton.
Sen. Elizabeth Warren is one of the other leading candidates, and she is also another progressive Democrat. There has been a lot of overlap between their campaigns, but this week Sanders and Warren got into an argument for the first time. Warren claimed that Sanders previously told her her gender would prove problematic when going against Trump, but then he denied having ever said that, to which Warren objected.
The argument between the two senators might end up benefiting Joe Biden, who is currently second in the polls. Biden has had a strong standing since the beginning, however, some of his more controversial decisions back when he was Vice President under Barack Obama (such as his support for the war in Iraq) might come to haunt him now.
In other news, yesterday marked the official beginning of the impeachment trial of Donald Trump. Many still continue to doubt that the US president will be successfully impeached because Republicans hold the majority in the Senate. Still, the events that transpire there could hurt his re-election campaign.
