Published: 07/11/2024 By ECAP
The British Pound dropped sharply following Donald Trump’s election victory, with GBP/USD falling over 1%. Moreover, the Pound is under pressure as the Bank of England is expected to cut rates due to slowing inflation. Additionally, market uncertainty around the impact of Trump’s policies on the UK economy is weighing on the currency, with investors cautious ahead of today’s upcoming economic data and central bank decisions.The Euro plummeted against the Dollar yesterday after Donald Trump's election victory, with analysts predicting a further decline if Republicans sweep the Senate. In fact, strengthened U.S. economic policies, including tariffs and fiscal measures, could boost the dollar, putting pressure on the euro. Looking forward, the European Central Bank may be forced to lower interest rates in response, exacerbating the euro's decline.
The U.S. Dollar held near four-month highs after Donald Trump's election victory, supported by expectations of inflationary policies and trade protectionism. Attention now turns to the Federal Reserve's rate decision, with a likely 25-basis point cut. Ultimately, the market is now focused on the Fed's outlook, particularly regarding inflation, which will play a key role in the dollar’s longer-term direction.
Data supplied by GC Partners