The U.S. dollar has again found traction against its G10 peers, while EM currency pairs made a rough go of it. At the same time, investors are trying to come to terms with the U.S. Whitehouse’s strategy towards Chinese investments.
The dollar is higher versus most major pairs as it continues to surge in the aftermath of the 2016 presidential election. The shock victory by Donald Trump is being taken in stride by the market after the initial recalibration of democratic win expectations. The dollar had been higher for most of the year given the Fed’s insistence a rate hike is coming. The comments by president-elect Trump on spurring growth by ending the austerity that has been prevalent in the developed world following the 2008 crisis has boosted the currency and global stocks higher.