The US Dollar has ascended to a four-month pinnacle in a single trading session, buoyed by Trump’s re-election and the prospect of a complete Republican sweep in Congress.
- The greenback is riding one of its most robust waves this year, gaining over one percent against most major global currencies.
- Former President Donald Trump has officially secured more than the 270 electoral votes necessary to reclaim the presidency.
- Consequently, the US Dollar index has breached the 105.00 mark, its loftiest level since early July.
On Wednesday, the US Dollar soared in the wake of former President Trump’s electoral triumph, achieving 277 electoral votes—comfortably above the threshold for victory. Fueling the Dollar’s momentum is the Republican Party’s ascendancy in the Senate. Although control of the House remains unresolved, Trump’s pathway to avoiding a “lame-duck” status seems promising, with bipartisan support anticipated to smooth the legislative route.
The US economic agenda is sparsely populated on Wednesday, enabling market participants to immerse themselves in the aftermath of the presidential race. Besides the weekly Mortgage Application figures from the Mortgage Bankers Association (MBA), no major economic data is expected to emerge.
Looking ahead to Thursday, the Federal Reserve will conduct its anticipated monetary policy meeting, where it will unveil its stance on interest rates. Market analysts are keenly attuned to any signals from Fed Chair Jerome Powell regarding possible adjustments to monetary strategy following Trump’s re-election.
Meanwhile, the benchmark US 10-year Treasury yield hovers at 4.45%, edging tantalizingly close to breaching its previous peak of 4.46%.