US election aftermath

Frank Walbaum FX Strategies.Asia

Important news for the day

US election aftermath

Directly at the start of the day the Dollar geared up steam as seemingly certainty returns back to markets. Without major interruptions the US have voted and it looks like the electoral college will be in favour of Donald Trump as the new President of the US. Since the dust is settling now also stock markets moved to higher levels. The S&P 500 created a new high and the volatility index VIX is now trading at the 16 level, indicating potential further upside in equities. Crypto markets seemingly also suggest upside momentum might continue as Trump has previously stated that he would favor digital tokens as well.

Market talk

The market news might soon shift towards the upcoming interest rate decisions in the UK and US. Tomorrow the Bank of England is set to reduce interest rates, whereby the GBPUSD currency pair is losing steam today. Any deviation might favour the Pound again. Oil markets have also started to weaken based on the daily chart. The stronger Dollar might support downside momentum here as also the long- term trend remains rather bearish. The tech- heavy Nasdaq looks also set to push to higher levels as the triangle formation will suggest further upside momentum.

Tendencies in the markets

Equities positive, USD weaker (after the strength), cryptos positive, oil weaker, metals weaker, JPY weak.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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