Dollar advance continues after Trump election victory
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Daily Currency Update
The post-election rally in the dollar has continued this morning, with EUR/USD dropping back below 1.07. The prospect of lower taxes, higher borrowing, and sweeping import tariffs have strengthened the world's reserve currency across the board.Additionally, the unpredictability of Trump's foreign policy has caused global nervousness, particularly regarding Ukraine. It appears Trump may seek a peace deal with Russia, even if it involves ceding land captured since the 2022 invasion. With the President-elect set to meet President Joe Biden at the White House this week, journalists will likely focus on Trump's plans for Russia/Ukraine during their first meeting since the election. Expect questions on international trade as well, with the new administration anticipated to implement significant tariffs on foreign goods entering the U.S. starting in early 2025.
Key Movers
Today is a public holiday in the US and Canada as citizens honour members of the armed forces who have died in past conflicts.Looking ahead, we have UK jobs and wage data tomorrow morning, followed by the latest US inflation numbers on Wednesday.
On Thursday, there will be separate speeches from the heads of the Bank of England, European Central Bank, and US Federal Reserve. We end the week with the latest UK growth data and US retail sales figures. EUR/USD is at 1.0690, GBP/USD is just under 1.29, and GBP/EUR is close to a 31-month high of 1.2065.
Expected Ranges
- GBP/USD: 1.2830 - 1.2960 ▼
- GBP/EUR: 1.2010 - 1.2100 ▲
- GBP/AUD: 1.9530 - 1.9655 ▲
- EUR/USD: 1.0635 - 1.0780 ▼