Week ahead for currency rates 14-11-16

Last week was dominated by the US elections as markets were upset and then shored up by the election of Donald Trump.

The dollar initially weakened as the polls were drawing to a close and it looked like Trump was going to win, but as he took to the stage to make his acceptance speech, he came across humbled, saying all the right things and the dollar proceeded to make significant gains. The main loser in all this has so far been the euro, which dropped significantly against the dollar and the pound. With nothing of note data wise, the pound has managed to gain 5 cent against the single currency despite remaining fairly flat against the dollar and other major currencies.

Trump ranted and raved during his election campaign but has been a totally different person since becoming President Elect. He made a calming acceptance speech last week and over the weekend came across calm and level headed, as he was interviewed on US chat show, 60 minutes while seemingly backing down on some of his more outlandish statements he made during his campaign, including Obamacare, stating he would not be fully repealing it now. 

As the markets continue to focus on Trump for direction of the dollar, elsewhere we have the following of note to affect currencies elsewhere:

 

Monday – key note speeches from Theresa May and ECB’s Marion Draghi

Tuesday – RBA minutes, UK inflation, EU GDP, US retail sales

Wednesday – UK unemployment

Thursday – EU inflation, ECB accounts policy meeting, US inflation, Feds Janet Yellen testifies before congress on current economic state

Friday – ECB Mario Draghi speech, Canadian inflation

As you can see, it’s a heavy week for key ecostats so if you have an upcoming requirement, contact one of the team today for some friendly guidance.