Iraq election was smooth sailing which means the dollar goes up

So why does the Iraqi election have to do anything with the dollar going up?

This just shows that the economic market is interrelated. The dollar was at ¥103.43 on Monday compared to ¥103.37 on Friday. The dollar could go up even more if there is a higher interest rate, which would eventually draw investors to dollar-denominated securities. The euro bought $1.3022, down from $1.3043.

If the outcome of the elections were different would there be a different impact on the dollar? Well, it would impact the confidence of investors on the U.S. The U.S is known as a wealthy nation, therefore even when the dollar fell, investors believed that it was just a business cycle and that the dollar would bounce back. Compared to other countries, the U.S have very good credit with investors. For example, the baht (Thailand in the mid 90's) dropped and investors pulled out their investments because they were not confident that the baht was able to bounce back, which cause the baht to drop even more. The U.S is very strong and will continue to dominate the market.

There will be a Federal Reserve interest rate meeting on Wednesday, a U.S. jobs report on Friday and then finally there will be a meeting of the G7 nations on the weekend. Therefore traders and the public will have the full information.