Not only did the US dollar make significant gains last night. At the same time, the euro lost more than the other G10 currencies, Commerzbank’s Head of FX and Commodity Research Ulrich Leuchtmann notes.
Euro suffers a blow amid Trump win
“This is no coincidence. The euro area is likely to suffer disproportionately from a restrictive US trade policy. Not only because of its direct exports to the US. Should the US not remain the ultimate sink of global trade flows (or only in terms of trade that are more favorable for the US than before), global trade as a whole may suffer. This will affect the export nations. And quite a few of them are in the euro area. Germany, for example.”
“Furthermore, if one believes that exports are an important growth driver for a number of euro zone economies, one must also assume that a restrictive US trade policy will cement Europe's growth disadvantage vis-à-vis the US. This, too, would be negative for EUR/USD in the long term.”
“Because all these consequences are becoming apparent this morning, EUR/USD is suffering not only in the distant future, but also this morning – beyond the extent of general Greenback strength.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD finds support near 1.0700, looks to post large daily losses after Trump win
EUR/USD trades deep in negative territory despite staging a modest rebound after finding support near 1.0700. The US Dollar preserves its strength as Republican nominee Donald Trump becomes the 47th president, while the improving risk mood helps the pair limit its losses.
GBP/USD trades below 1.2900 as Trump victory boosts USD
GBP/USD stays on the back foot and trades below 1.2900. The US Dollar outperforms its rivals and doesn't allow the pair to gain traction as Donald Trump completes his political comeback, becoming only the second US president to win a second, nonconsecutive term.
Gold extends slide toward $2,650, US yields surge higher as Trump claims victory
Gold remains under heavy bearish pressure and trades at a fresh multi-week low below $2,700 as markets react to Donald Trump's victory in the presidential election. The benchmark 10-year US Treasury bond yield rises more than 4% on the day, forcing XAU/USD to stretch lower.
Bitcoin soars to a new all-time of $75,407 as Trump wins US presidential election
Bitcoin soared over 7% to a new all-time high of $75,407 on Wednesday as Donald Trump was elected as the 47th President of the United States, the candidate that was seen as more favorable for crypto markets due to his pro-crypto stances.
Trump wins: Tax cuts come with a cost
Donald Trump’s victory will ensure a lower tax environment that should boost sentiment and spending in the near term. However, promised tariffs, immigration controls and higher borrowing costs will increasingly become headwinds through his presidential term.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.