Undoubtedly event of the day was today’s press conference of the president-elect. Speech made by Donald Trump began after 5 p.m (GMT+1) after the end of sessions on most of stock exchanges in Europe, so many investors have been deterred from nervousness.
Although Donald Trump, who even during the election campaign was not given much chance for success eventually won the election and despite many fears markets reacted to the decision of American voters with dynamic increases , today’s speech proceeded in a completely different tone. Since the elections in the United States on US stock exchanges was a boom which translated into a strong appreciation of the US currency. The dynamics of growth was also supported by December rate hike.
From today’s conference and speech of the new president-elect everybody expected concrete information how will look the timetable for tax reforms and changes in law for enterprises. Instead, Donald Trump thanked only automotive corporations for continuing investments in the United States and criticized pharmaceutical companies for high prices of pharmaceuticals, which directly hit the biotechnology sector.
So… context of the whole occurrence is not optimistic. On the markets evident is disappointment of the attitude of the new president-elect, who instead focusing on topics related to the development of the American economy mainly raised subjects related to issues of relations with Russia. As a result of today’s conference dollar lost against major currencies.
Let’s get to the charts …
AUDUSD
Although yesterday …even today afternoon, many investors and analysts expected a decline in this currency pair, market itself verified everything. Dynamic growth due to above mentioned conference in the US has changed radically picture of the situation and from technical point of view, in near future we can even expect retesting of level 0.7525.
GBPUSD
Although as a result of today’s publication of the estimated UK GDP pair GBPUSD attempted to breakout thru the bottom from ongoing from beginning of the week consolidation , but after Donald Trump conference market returned again above the level of 1.2115.
If we look at the daily chart we see that a second (after yesterday) bullish candle is forming rejecting essential support. The rejection of this level would be a signal to return to increases even in the vicinity of the December highs.
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USDCAD
As a result of today’s weakening of the US dollar market today broke out from lasting for last few days consolidation.
Looking at the daily chart we see that now also breaks bullish trend line. Successful and permanent defeat of this trend line could open way to longer term declines. So is the boom on USD slowly coming to an end?
We are willing to know your opinion on this issue. Please write in the comments what you think about the future of USD ?
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