Republican Mike Pence and Democrat Tim Kaine have potential to sock it to commodity

The market reaction to the political debate will depend on the proposals put forward by each candidate, along with how well their policies stand up to questioning by their opponent.

On Tuesday night, the two vice-presidential nominees, Republican Mike Pence and Democrat Tim Kaine, each cast the other party’s presidential nominee as an unacceptable choice in a time of peril.

The two candidates initially spoke to each other politely and then quickly descended into backbiting, much as their running mates had done during last week’s presidential debate.

As for the market, we can see the impact this week on a few commodities, due to the tow of the vice presidential debate. Gold managed to trade higher at levels above $1,270 an ounce, but momentum appeared to be subdued. Tuesday's decline in stock prices followed hawkish comments from Federal Reserve Bank of Cleveland President Loretta Mester and Fed Bank of Richmond President Jeffrey Lacker, both arguing in favor of raising interest rates sooner. Nymex Crude Oil closed 0.3% lower at $48.69 a barrel, snapping a four-session winning streak.

Commodity-linked currencies also gave up recent gains against the greenback. The Australian dollar drifted lower from a session-high of 0.7691 against the U.S. dollar after Australia's central bank, as expected, kept its cash rate target unchanged at 1.50%. AUD/USD settled 0.7% lower to 0.7619.

Next week we will look at how US presidential election results can affect Stocks prices.

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