On Wednesday, the U.S. dollar rebounded after sharp initial declines as Donald Trump scored a shock presidential election victory. The greenback has recovered after Trump made a plethora of promises on the U.S. economy, which he claims will significantly promote the economic growth.
The U.S. dollar index rose as much as 60 pips and settled at 98.50.
Gold prices fell as much as 5% and declined to $1,270 after a speech from the soon to be US President Donald Trump. Technically, the yellow metal could re-test $1,280 once again and may touch $1,300.
Euro abandoned its gains and fell to $1.09, negatively affected by Trump’s victory speech as he said, "We will double our growth and have the strongest economy anywhere in the world.”
USD settled at ¥106 vs. JPY, due to the recovery of global markets and adopting a positive outlook on the future of the quantitative easing policy pursued by the Fed for over a decade. Technically, the pair is likely to trade in a limited range at ¥107 before returning to ¥105.
Oil pared its losses at the end of yesterday’s trading session despite Donald Trump's presidential victory and larger-than-expected U.S. stockpiles. After Trump’s victory, the U.S. economy may enter a recession and U.S. crude prices could decline further due to excess supply.
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.