- Trump victory helps boost the Pound against commodity currencies
- GBPAUD trading over 3-cents higher since this morning
- UK-US trade deal post-Brexit highly likely
The Pound begun quietly during the early hours of this morning, despite a Trump victory being announced at the early hours of the trading day. US stock markets were asleep of course, with much of the movements against the Pound resuming at around 2pm GMT.
A trump victory was a huge shock to the markets, and more noticeably the commodity markets, oil prices are down 0.24% which doesn’t bode well for the likes of the Canadian Dollar.
But what does a Trump victory mean for the commodity markets? Yes stocks have fallen but a weaker US Dollar will hurt prices, but something else could be playing on the RBA’s mind.
US interest rate hike may be put on hold
The RBA have been hoping for the FED to raise interest rates to weaken the Australian Dollar, an important move to keep the countries exports in good order. An interest rate hike would also strengthen the US Dollar and make commodity prices more expensive.
With a Trump victory much of this becomes uncertain, as the FED may now choose to “wait and see”, to determine whether Trump could have a negative impact on the US economy.
Those looking to buy the Australian Dollar could find themselves with fresh opportunities by the end of the week. Pay close attention to the rates.