After a surprise outcome, the prospects for the US dollar are suddenly looking a lot brighter—thanks in part to the new administration’s more protectionist attitudes towards the American economy. For multinational companies with dollar-denominated cash flows, a stronger US currency could change the way payables and receivables are handled. With this in mind, we’ve analyzed how post-election FX issues could affect corporate payments and transfers in the months ahead.
New U.S President elect Donald Trump continues to have a massive impact on capital markets.
Global bond markets have lost more than $1 trillion in value; their worst rout in 18-months, on investors bets that Trumps new administration would boost business investments and spending while firing up inflation.
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.
Polls, media, markets and the rest of the world got it wrong – Donald Trump has become the 45th President of the United States.
It’s a stunning and shocking victory that’s going to take investors and dealers awhile to adjust to, a powerful rejection of the establishment forces, from the world of business to government.
Market volatility continues with a risk-on rally gaining momentum overnight now that the FBI said Sunday that no new evidence was found to warrant charges against Clinton.
Last week saw global equities slide again, crude oil under pressure on doubts about OPEC’s ability to cut production at its next meeting in Vienna (Nov. 30). Economic data was mixed, as too were corporate earnings, while Friday’s non-farm payroll (NFP) provides a shout out for a Dec. Fed hike. The RBA, BoE, BoJ and Fed all met and left their respective policies unchanged.
The USD is lower across the board versus major currencies as the U.S. election enters its final stretch. The FBI investigation into Secretary Clinton’s emails has eroded her lead in the polls and the battle for swing states will be crucial. The eyes of the world will be watching as votes start coming in on November 8.
This is a massive week for capital markets.
There are four central banks, including the Bank of England (BoE), Bank of Japan (BoJ), Reserve Bank of Australia (RBA) and the Federal Open Market Committee (FOMC) who will be keeping the various asset classes on their toes with their monetary policy announcements. None are anticipated to alter their current policies, but their noted intentions will have a lasting impact on asset prices. Perhaps, it’s a good time for the Fed to signpost a December rate hike?