Trump wins historic victory (Daniel Johnson)

AUDGBP Lower as Retail Sales Slump Down Under

How will Trump gaining power effect the Currency Market?

Despite Clinton being ahead in the polls yesterday, the final day’s votes saw  Trump gain a substantial lead and he has now secured the Presidency.

The Mexican Peso has dropped by over 10% due to Trump’s stance on immigration and Asian markets have tumbled due to his statements on restricting trade with China. I have to add the Canadian immigration website has also crashed.

There has been little movement on the Australian Dollar so far although there could well be volatility as the day progresses. If the markets followed popular theory you would expect to see the Aussie strengthen as investors leave the safe haven of the US dollar due to the uncertainty of the US economy following Trumps election. This is due to his controversial plans to limit trade with China. The Australian Dollar could be the investment of choice due to the high interest rate and reasonable risk.

I would however expect the smart investor to move to commodities, particularly gold, which will no doubt significantly rise in value.

I am currently very surprised the markets have not reacted to the news of Trump’s election. I would expect far more volatility on all currency pairings. Will market response stay muted or is this the calm before the storm? If you have a currency requirement it would be wise to be in touch with an experienced broker who can assist in timing your trade and pick a contract to suit your indivdual needs. I would be happy to assist. Please let me know the currency pair you are trading, time scale on the trade and a ball park figure as to the size of your trade and I will endeavour to maximise the return on your transfer. I work for one of the top brokerages in the country. I can assure you we offer some of the most competitive rates of exchange and we are a safe option, we are registered with the FCA and are PLC company in business for over sixteen years. I am also prepared to provide a quote against your current provider and I am rarely beaten. Banks are never a problem, I would expect to beat their rates by as much as 4%. I can be contacted at [email protected]. There is no obligation to trade with us for requesting a trading strategy. Please do not hesitate to get in touch. Thank you for reading my blog and I look forward to being of assistance.

Daniel Johnson

Executive Dealer – Foreign Currency Direct PLC