- Pound to US Dollar rates rebound despite Trump victory
- Trump’s commitment to spend on infrastructure helps sooth markets
- Brexit uncertainty continues to drive Sterling exchange rates
Sterling to US Dollar exchange rates rebound from US election volatility
The result of the US election is now in, and as highlighted in my report yesterday, the markets, polls and bookmakers all got it wrong. During the early hours of this morning Pound to US Dollar exchange rates hit a peak of 1.25427 before sliding back below 1.24 at the beginning of the trading day.
Whilst it was expected that the Pound would surge against the Dollar if Trump assumed Presidency, his victory speech provided comfort to markets.
Trump’s pledge to improve infrastructure
In Trump’s winning speech, he remains committed to improving US infrastructure which has helped the markets ease some of the concerns regarding his policies. An improvement to infrastructure could help boost employment rates and stimulate the economy in the months and years ahead. The question does remain as to whether the FED will raise interest rates as predicted by the markets, but given Trump’s distaste for Janet Yellen’s interest rate bubble we could still see a hike as early as December.
As it stands, Pound to US Dollar exchange rates have rebounded to their pre-election levels as Brexit uncertainty continues to haunt the UK economy. Theresa May’s pledge to commit to triggering Article 50 in March remains a concern for markets, with her High Court appeal set for December.
Those buying US Dollars should not assume further strength for GBPUSD, as the Brexit drama continues to overshadow any political events elsewhere.