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Donald Trump – The Markets React

November 9, 2016

The world has woken to the news that America has chosen Donald Trump as their 45th President.

Currency markets are usually a good indicator of optimism and often react instantly to political decisions, as we saw with Brexit last June (although we remained open throughout that turmoil!).


Immediate Effects on European Currencies

PoundSterlingLive have some solid analysis of today’s early market shifts, looking at European reactions to the election.

On Monday we saw a large jump in the US Dollar and fall in the Pound and Euro as a Clinton victory was baked into the market.

Clinton’s shock defeat (she was as short as 2/9 with some bookmakers yesterday) has spooked some investors. CNBC report that:

Stock index futures came well off session lows after Hillary Clinton conceded the presidential election to Donald Trump. However, Dow futures were still about 300 points lower after earlier falling 800 points.

There’s also been plenty of turmoil in the USD/AUD and EUR/USD corridor. PoundSterlingLive are accurate in their Euro assessment:

The EUR and CHF are best performers in Europe: up more than 2%. The EUR/USD broke above the 200D moving average and the squeeze may continue to 1.13, and above.

uad-aud-eur-usd weigh in on the wider implications of a Trump presidency,

….there will be concern over trade deals: for example, the yet-to-be-approved Trans-Pacific Partnership is likely dead (TTIP, too) and existing deals could also be imperiled (which would probably be bad for big, multinational businesses).

As with any major market event, we’ll remain open during the fluctuation so our customers can still get the best exchange rates.

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