Though currently under some pressure, the Pound Sterling had earlier edged higher versus the Euro and the US Dollar as markets digest the global repercussions of a Donald Trump presidency. Though Sterling is largely anticipated to continue to depreciate given the Brexit vote and the uncertainty surrounding that, analysts say that the gradual fallout from Trump’s surprise victory could mean more uncertain inputs, both negative and positive, to the Pound that had not been taken into consideration initially.
As reported at 10:35 am (GMT) in London, the GBP/USD was trading at $1.2381, down 0.29%; the pair has ranged from a session peak of $1.2455 to a low of $1.2379. The EUR/GBP was trading at 0.8803 Pence, up 0.09%; the daily range for the pair was 0.8769 Pence at the low end and 0.8825 Pence at the high end.
Global Shift in Voting Trends?
Analysts wonder if the Brexit vote and the Trump victory, both originally viewed as impossibilities, will spark more victories in Europe for populist politicians which might help the Pound. One analyst in London felt that this could be the start of a global shift in public sentiment. In light of the Trump victory, markets will need to gauge whether Trump will, indeed, keep all of his campaign promises and assess how that will impact their trading decisions. Analysts are still holding out hope for a December rate hike from the Fed, despite the Trump win.