A clear victory by President Obama would boost risk sentiment, this pro says - but not for long.
If you're planning to watch the election results, plenty of pundits are warning that it will be a long night. But right now, a number of Wall Street pros seem to be expecting a victory for the president - and that is giving Rob Rennie, global head of FX strategy at Westpac Bank, a trading idea.
"If we do see a clear victory for Obama," he told CNBC, "then I think there is probably a bit of risk on for a couple of days, maybe a week or so."
But don't expect the sentiment to last, Rennie says. He thinks the smartest move is to sell into a rally in risk-sensitive currencies and buy the dollar.
"You do get the sense that the U.S. economy has passed something of a milestone," he says, and that should support the buck.