The US dollar tumbled against a basket of currencies as Hillary Clinton conceded the presidential election to Donald Trump early Wednesday morning. The greenback could decline further during the next few days.
The US dollar could decline further as Trump may seek to impose new taxes, which could lead the US into a recession in the first quarter.
Financial markets are still under pressure due to concerns about the Republican candidate and his management plan for the US economy, which depends on consumer spending of 73%, while exports make up 13%. The US dollar index fell as much as 1.5% and declined to 96.50.
Gold prices surged to $1,337 after Donald won the US election. Technically, the yellow metal could settle at $1,315 and re-test the resistance of $1,330.
USD fell to ¥101, as Trump defeated Clinton in the bid for the White House. Technically, USD could decline further in the coming period.
Euro jumped to $1.13 vs. USD. Technically, the greenback is unlikely to rebound during the day.
Oil prices traded in a limited range before declining to $43 as Donald Trump stunned the world by winning the U.S. presidential election. Technically, prices could decline further to $40 during the week.
The most important economic events:
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.