Republicans still rule the House of Representatives. Check. Fiscal cliff is still a major threat to U.S. economy. Check. Fed will continue pursuing QE. Check. The dollar is weaker and will fall further. No. In fact, the dollar should rise again for precisely the same reasons as it was heading higher before the U.S. elections: The global recovery remains highly questionable. A resolution to the euro-zone debt crisis remains as elusive as ever. And, despite periodic periods of bullishness, the global investment community remains highly partial to low-risk assets. As the pundits on U.S. television channels started to declare President Obama the victor in the early hours of Wednesday morning, the dollar performed a classic slump as the removal of election uncertainty and worries over what a Mitt Romney victory might have brought led investors to dive into more risky assets. But, as the financial markets settle back and scan the global horizons again, there are plenty of reasons to believe that safe havens such as the dollar will remain at the top of their wish lists.

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