The US Dollar Index surged to a multi-months peak, continuing last week’s gains and driven there by a rise in yields on US Treasury instruments. Yields have continued to edge higher since Republican Donald Trump surprisingly won the US Presidential election over Democratic Hillary Clinton. Both the Euro and the Japanese Yen have fallen by nearly 1% each to fresh multi lows, largely in reaction to the election outcome, with sentiment high that Trade will put significant restrictions on trade.
As reported at 10:40 am (GMT) in London, the EUR/USD was trading at $1.0761, down 0.84%; the pair has ranged from a session low of $1.0727 to a peak of $1.0849. The USD/JPY was higher at 107.911 Yen, a gain of 1.21%; earlier, the pair hit a high of 107.95 Yen while the session low was at 106.51 Yen. The GBP/USD was trading at $1.2511, down 0.71%; the daily low was at $1.2461 while the peak was at $1.2612. The US Dollar Index was up ay 99.81 .DXY, a gain of 0.59% and off the session high of 100.02 .DXY.
Outlook Brightening for Yen?
Analysts say that though the Dollar has risen quicker than expected, markets are still trying to gauge the true meaning of a Trump presidency and its impact on the market. For Japan’s central bank, for example, there is finally some release of the constant pressure for a stronger currency. Moreover, the Bank of Japan’s 3rd quarter growth data released over the weekend showed some expansion of GDP to 2.2% annualized, against expectations of a rise to only 0.9%.