Last week was probably the biggest week of the year on financial markets with Trump winning the US Presidential Election, the Bank of England cutting rates by 25 bps and the Fed also cutting rates by 25 bps. The aftermath of these events has resulted in a strong Dollar, strong Pound and a weak Euro- this was also heavily contributed by the issues with Germany’s government. The BoE is now not expected to cut rates until February where as the Fed will look to cut rates again in December.
However, a Trump Presidency will be strong for the US Dollar as it was in his previous term due to potential tariffs being placed on other countries, so this will be worth keeping in mind over the next couple of years during his term.
Monday is a relatively quiet day as it is Veterans Day/Armistice Day, so the real releases begin on Tuesday- with UK employment numbers being released at 7am- the UK job market is currently in focus given the BoE and UK Government’s latest moves in both monetary and fiscal policy- any negative change will hit the Pound hard, however leading up to Christmas we usually find that the job market gets stronger with part time work increasing.
