A surprise Donald Trump victory from last night’s Presidential election has been taking the US dollar for a ride this morning. While the greenback was trading sharply lower against major currencies earlier as investors fled uncertainty, the dollar has now recovered after a conciliatory speech from Trump and is beginning to rise. Because investors were broadly expecting a Hillary Clinton victory and the perceived certainty that the “status quo” candidate would have brought, the surprise result is pushing investors to readjust their positions and assess what a Trump presidency might bring.
After getting a boost earlier this morning from a weaker US dollar, both the euro and the pound are flattening out as foreign investors continue to process the Trump victory.
In North America, both the Canadian dollar and Mexican peso are falling as a Trump victory is causing uncertainty around the current US trade ties with Canada and Mexico.
Elsewhere, the Australian dollar is also down as investors are now uncertain about the US’ trading agreements with China (Australia’s largest trading partner). The Japanese yen is gaining as investors flock toward its safe-haven status.
EURUSD: The euro is beginning to flatten out as investors digest a Trump victory.
GBPUSD: The pound is also trading even after the surprise outcome.
AUDUSD: The Aussie dollar is falling as there is uncertainty around the US’ trade ties with China.
USDCAD: The Canadian dollar is trading lower with uncertainty around the US’ current trade policy with Canada.