After an intense week of both political and economic factors causing volatility to markets. First seeing the results on Wednesday of the US election – being a driver to rally the USD against its peers. USD was up 2% atone point in a 24-hour window against the EUR. Even if its two months until the Presidential change in the US and no changes can take place yet when it comes to fiscal policies – we can still expect market effects from press conferences from Donald Trump indicating what the next steps will be for the US economy.
Yesterday highlighted another economic policy which has been the main influence to market fluctuations, monetary policies (interest rate decisions). Bank of England and the Federal Reserve both had their meetings yesterday, there was no surprises to the market – both decided to lower interest rates by 25 basis points to a base rate of 4.75%. Even if the outcome was the same from their policy decisions, we could see different approaches from the press conference taking place afterwards. Read more...
