In Nordine Naam’s weekly forex blog for FX-MM, Natixis’ senior forex analyst discusses the latest currency movements in light of Donald Trump’s presidential election victory. Following the result that defied the pollsters, U.S. equity markets have fallen and, in turn, so has the dollar. With this in mind, Naam believes the greenback will remain highly volatile in the short-term.
Meanwhile, sterling rebounded as high as 1.2494 against the U.S. dollar, as investors squared their short positions on the back of promising sentiments emanating from the Bank of England’s (BoE) October meeting. Benefiting from last week’s High Court decision that permits parliament a vote on invoking Article 50, the GBP/USD could rise towards 1.264, especially if a snap general election in 2017 becomes increasingly likely.
To read the full forecast, please click here.