There is one thing worth noting in this complex political and economic situation. Even though the Republican Party would normally like to curb the dollar's strength, the likelihood of a Republican victory later this year could actually boost the dollar.

Strategists including Andrew Watrus and Zoe Strauss elaborated on this in a research note on August 6. They said that although former President Trump had spoken out against the dollar's strength, they believed that Trump's policies would eventually strengthen the dollar. Looking back at history, the key dollar index surged in November and December 2016 after Trump's last victory.

The strategists also added that if the Republicans win the election, their expansionary fiscal policy agenda is likely to raise expectations for U.S. economic growth, thereby attracting capital inflows to the United States. This capital inflow will undoubtedly have a positive effect on the dollar, making it more competitive and attractive. Of course, there are many uncertainties and variables in the political situation and economic trends, and the future trend of the US dollar will be affected by a combination of factors, but the potential correlation between the prospects of the Republican election and the trend of the US dollar undoubtedly provides an important perspective for market observation and analysis.