US Dollar trims losses to 97.40 after Trump became President
After briefly bottoming out in sub-96.00 levels, the greenback – tracked by the US Dollar Index – has managed to retake the 97.00 handle and above.
US Dollar weaker on Trump’s victory
USD is trading well on the defensive after Republican and billionaire Donald Trump has become the 45th US President today, defeating Democratic candidate H.Clinton.
The index found support in the 96.00 neighbourhood as the US elections were under way, although buyers turned up an pushed the buck back around 97.30, where it is now trying to consolidate.
The greenback is expected to remain under pressure in the very near term while market attention should shift back to the potential rate hike by the Fed at the December meeting. Currently, CME Group’s FedWatch tool is signalling the probability of higher rates by year-end at above 76%, based on Fed Funds future prices.
Nothing expected data wise in the US today, while post-elections reaction in the US and global markets are expected to remain in the headlines.
US Dollar relevant levels
The index is losing 0.48% at 97.41 facing the immediate support at 95.91 (low Nov.9) followed by 95.80 (200-day sma) and finally 95.67 (6-month support line). On the flip side, a breakout of 99.09 (high Oct.25) would open the door to 99.95 (high Jan.21) and then 100.60 (high Dec.3).