Australian dollar (AUD) uncertain as Trump victory ripples through markets
The Australian dollar (AUD) was volatile yesterday as markets reacted to the results of the US presidential election.
Overall, AUD exchange rates were mixed, as Donald Trump’s victory weighed more heavily on European currencies.
Australia’s latest trade figures are the focus for AUD investors today. If we see the trade surplus shrink, as expected, the ‘Aussie’ could face headwinds.
New Zealand dollar (NZD) volatile amid US politics
The New Zealand dollar (NZD) was also turbulent yesterday, rising against its European counterparts but softening elsewhere amid the market volatility.
Risk appetite could be the defining factor for NZD exchange rates today. If sentiment sours, the risk-sensitive ‘kiwi’ may come under pressure.
Pound (GBP) slides amid concerns for UK economy
The pound (GBP) slumped yesterday as Trump’s election victory raised fears about the UK’s economic outlook.
Analysts believe that a Trump presidency could hurt UK growth while also driving up inflation, potentially prolonging the country’s cost-of-living crisis.
Looking forward, the Bank of England (BoE) interest rate decision tonight could drive GBP movement. With an interest rate cut fully priced in, any hints at another cut in December could drive Sterling lower.
Euro (EUR) plunges amid USD strength
The euro (EUR) plummeted yesterday as the single currency suffered from its negative trading relationship with the soaring US dollar (USD).
In addition, fears that Donald Trump’s planned tariffs on European exports could hammer the Eurozone economy weighed heavily on EUR.
Turning to the session ahead, mixed German data and the Eurozone’s latest retail sales data could see EUR waver this evening.
US dollar (USD) skyrockets following Trump victory
The US dollar surged yesterday as Trump’s election victory turbocharged the ‘greenback’.
Markets expect a low-tax, pro-business approach from Trump, which could boost US growth and lift inflation in the near term, potentially pushing the Federal Reserve to keep interest rates higher for longer.
The afterglow of the US election could keep USD afloat today, although movement may be limited ahead of the Fed rate decision tomorrow morning.
Canadian dollar (CAD) climbs alongside USD
The Canadian dollar (CAD) strengthened yesterday, with CAD enjoying its positive correlation with USD.
With market-moving Canadian data in short supply today, USD and oil price movement could continue to influence the ‘loonie’.
Data releases
10:30 AUD Balance of Trade (Sep)
17:00 EUR German Balance of Trade (Sep)
17:00 EUR German Industrial Production (Sep)
20:00 EUR Retail Sales (Sep)
22:00 GBP BoE Interest Rate Decision