Trump’s against the odds victory yesterday sent markets haywire before a large retracement saw stock markets finish higher for the day amid promises of lower corporate tax and increased fiscal spending. The Dow Jones fell 800 points before miraculously making a dramatic comeback to finish up 1.4% whilst the S&P e-minis reached the 5% limit down before finishing 1.1% higher. USD finished the day higher with a focus on stimulus and inflation. USD/EUR had an energetic journey to end the day at 1.0900 after suffering a 257pip spike before a colossal 400 pip reversal. The USD/JPY closed at three month highs at 105.88 but experienced another great reversal falling 427pips before recovering 470 pips.
Its certain traders will forever remember the volatility the day President Trump was elected and sentiment is expecting more. The USD/MXN finished up over 8% at all-time highs of 20.77 which has heightened Mexico’s fears of currency weakness asking questions of a Mexican Central Bank cash rate hike.
The Australian Dollar was the weakest currency dropping 4% vs EUR before rebounding to finish at 1.4880. Vs JPY price dropped to a low of 76.63, down 5.4%, but rebounded and is up 0.35% this morning. Aussie is particularly susceptible to sentiment as commodities finished higher with copper +3.4%, iron 4.7%, and Oil +0.8%.
XAU began the day at 1274.00 and reached highs of 1336.80 as vote counts in major states projected a Donald Trump victory. Closing the day at 1275.50
