US Dollar soars to four-month high as Trump wins US presidency

NEW YORK (November 6) The US Dollar (USD) rises sharply on Wednesday after former US President Donald Trump secured enough electoral votes to become the next US president. The former US President has secured 277  votes, more than enough to surpass the magic 270 threshold needed to secure a majority. An additional element that might result in more US Dollar strength is the fact that the Republicans have secured a majority in the Senate. While the race to control the US House of Representatives is still undecided, it looks like Trump will not be a lame-duck president and will have support from both institutions when it comes to passing laws. 

The US economic calendar is very light on Wednesday. It looks like traders will be able to further assess and focus on the outcome of the US presidential election. Besides the Mortgage Bankers Association (MBA) weekly Mortgage Application numbers, nothing special is expected on the economic data front. 

Daily digest market movers: Trump has been elected as US president

• At the time of writing, former US President Donald Trump has secured 277 electoral votes and has comfortably reached the 270 threshold to win. Vice President Kamala Harris is lagging behind with only 224. 
• Asian equities saw China being hurt, with tariffs underway once Trump is sworn in next year. European and US equities are rallying higher. 
• The CME FedWatch Tool is backing a 25 basis point (bps) interest-rate cut by the Federal Reserve (Fed) on Thursday’s meeting with a 97.5% probability. More interesting is the December 18 meeting, where a 50 bps interest-rate cut from the current level is expected by a 68.4% chance, suggesting that markets anticipate a rate cut this week and in December. Before the US election outcome, the probability was still at 80%.
• The US 10-year benchmark rate trades at 4.35%, settling down a bit after hitting 4.46% earlier.  

FXStreet