Trump it up

10 November, 2016

Both stock and currency markets staged a remarkable turnaround yesterday, wiping away the anticipated Trump impact to leave the S&P up more than 1% on the day and the dollar firmer against nearly all major currencies. Gold saw a hugely volatile day, seeing the largest one day trading range since the Brexit vote back in June. So why the change in view? The negative tone seen in Asia was probably overdone, but from their perspective validated by the fact that a more protectionist US administration would hurt them hard, harder than Europe. The pickup happened before Trump’s acceptance speech, but markets took the more conciliatory tone as suggesting Trump the President may be less maverick than Trump the candidate. The stocks that did best were those that were hoping for less regulation (banks, pharma) as well as those were hoping to benefit from increased infrastructure spending. As for currencies, the Mexican peso remained down in the dumps, the proximity and dependence on the US meaning that they could not take on such a positive tone.

Trump said that the vote was going to be Brexit “plus plus plus”. Despite what you often seen in the headline, the UK has not left the EU. Similarly, Trump is not President for another 51 days. During that time, he’s either going to continue to calm markets, but also may stoke up tensions in certain areas. The truth of the matter is that we just don’t know at this point in time. None of today’s scheduled events or speakers are going to over-shadow the post-election tone in markets. At one point, the markets were putting less than 50% probability of the Fed hiking rates in December, but that’s now changed to see pricing back above 80%.


Source link  
Oil hits 3-month lows

On Monday, the dynamics of oil was in the spotlight on a combination of negative factors by both the potential demand and the supply part. Asian markets...

Fed Monetary Policy Report to be released

This report is release twice a year and provides an insight into the conduct of monetary policy and economic developments and prospects for the future for the...

The Pound continues to weaken

Cable (GBPUSD) took a hit yesterday as Boris Johnson resigned from the Cabinet following the earlier decision by David Davis to part ways...


The latest Brexit proposals

The UK's Brexit Secretary David Davis has resigned along with two junior ministers, Steve Baker and Suella Braverman, over PM May's latest softer Brexit proposals...

Some ECB members want earlier rate hike

The markets remain subdued after yesterday's 4th of July celebrations in the US. Despite this Oil headlines are dominating the markets once again. US President Trump...

Gold has played out as a double top

The gold chart has played out as a double top with a break under 1300.00 signalling a move down to 1240.00 from its highs at 1365.00. We have now hit the 1240.00...


Gold chart has played out as a double top

The gold chart has played out as a double top with a break under 1300.00 signalling a move down to 1240.00 from its highs at 1365.00. We have now reached...

President Xi warns of Full Scale Trade War

Risk on sentiment returned briefly yesterday as markets retraced some of Monday’s selloff but sentiment in Asia has declined overnight. The PBOC cut...

USD extend losses in risk adverse markets

Stock markets fell hard yesterday as trade tensions deepened and the consequences of such action has investors worried. US Company Harley Davidson...


In the past 24 hours Bitcoin has lost -0.5% and reached $7375.12. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.3727% and is now at $1.1646. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 3.96% and is now at $454.45. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets90%
2FXTMFXTM88%
3HYCMHYCM86%
4FIBO GroupFIBO Group79%
5FxProFxPro78%
6FXCMFXCM73%
7AvaTradeAvaTrade69%
8HotForexHotForex68%
9XMXM68%
10Alfa-ForexAlfa-Forex66%
  


Share: