US dollar firmly in the green, up more than one percentage point against most major counterparts.
US dollar (USD) rose substantially on Wednesday as former US President Donald Trump won enough electoral votes to become the new president. The former US President received 277 votes, more than enough to surpass the key 270 threshold required to achieve a majority. Another factor that could lead to increased US dollar strength is the fact that Republicans have gained a majority in the Senate. While the contest to rule the US House of Representatives remains unclear, it appears that Trump will not be a lame-duck president and will have backing from both institutions when it comes to passing legislation.
The US economic calendar is quiet on Wednesday. It appears that traders will be able to examine and focus on the results of the US presidential election. Aside from the Mortgage Bankers Association’s (MBA) weekly mortgage application numbers, no significant economic data expected.
Daily Market movers: US Dollar index rose above 105.00, reaching its highest level since July, before falling slightly.
At the time of writing, former US President Donald Trump collected 277 electoral votes and comfortably reached the 270 mark win. Vice President Kamala Harris trails behind with only 224.
Asian equities suffered as a result of tariffs that will go into effect once Trump inaugurated in next year. European and American equities are surging higher.
The CME FedWatch Tool predicts a 25 basis point (bps) interest rate drop by the Federal Reserve (Fed) during Thursday’s meeting with a 97.5% probability. More noteworthy the December 18 meeting, where a 50 basis point interest rate decrease from the current level projected with a 68.4% possibility, implying that markets expect a rate cut this week and in December. Before the US election, the probability remained at 80%.
The 10-year benchmark rate in the United States Currently trading at 4.35%, having previously reached 4.46%.
