The US dollar sharply fell earlier today after the US presidential election was concluded with a victory for Republican candidate Donald Trump. The currency then recovered all its losses in a day of volatile trading.
Markets were initially shocked following Trump’s victory, as a win for his Democrat rival Hillary Clinton was favorable from an economic viewpoint. However, investors are now rethinking the popular assumption that Trump’s access to the White House is bad for the dollar, which supported the greenback’s recovery to the same trading levels prior to Trump’s victory.
Trump’s presidency might still carry some good news for the US currency in the medium term as the new Republican president has his sight on tax cuts to create better economic conditions that would attract US companies to operate in their homeland while introducing new regulations that will impose more taxes on companies operating outside the US.
The dollar is expected to continue experiencing volatility for weeks to come as global traders and investors speculate the possible economic effects of Trump’s presidency. In his victory speech, the Republican president made no mention of his promised border wall with Mexico or his plan to end or renegotiate the NAFTA trade deal with Canada and Mexico.
EUR/USD fell to 1.0994 as of 14:21 GMT after surging to 1.1298 at 05:07 GMT today. The pair closed on Tuesday at 1.1022. GBP/USD traded near its lowest level today at 1.2374 after rising to 1.2545 at 05:16 GMT.
© YahiaBarakah for Forex News, 2016. |
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Post tags: Donald Trump, EUR/USD, GBP/USD, Hillary Clinton, US Dollar, US Presidential Election
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