Trumps Lead Boosts the Dollar
Early results in the U.S. presidential election indicate a lead for the Republican candidate.
A potential Trump victory is seen as favourable for the U.S. dollar, based on Donald Trump's plans to:
increase tariffs on key U.S. trading partners;
stimulate domestic business and support small-cap companies.
Additionally, the Trump administration may influence the Federal Reserve's rate policies, potentially leading to rate cuts as anticipated earlier.
The forex market has responded with a stronger U.S. dollar, especially against the euro.
On 21 October, an analysis of the EUR/USD chart indicated potential support from:
a major trendline (shown in blue);
the psychological level of 1.0800.
The price indeed rebounded upwards from this area (shown by an arrow), but recent news has sparked a bearish impulse, bringing EUR/USD below the key trendline today.
Its possible this bearish momentum could continue, potentially keeping EUR/USD below the 1.0800 level.
Read more: https://fxopen.com/blog/en/oa-trumps-lead-boosts-the-dollar/
Text source: Forex Trading Blog
