The currency market already seems to have factored in the probable victory of Donald Trump in the United States. The price of the US dollar strengthened on Wednesday morning.
‘Even if the counts are still underway in some important states, it would take a small miracle for Donald Trump to lose and Kamala Harris to win,’ Commerzbank summarizes in its commentary.
Investors on the foreign exchange market have already largely integrated this result: the dollar increased very significantly on Wednesday morning. The USD/CHF pair is currently trading at 0.8733, just below its previous daily high of 0.8755. Compared to Tuesday evening, the US dollar gained a cent.
‘The apparently clear result of the US presidential election reduces uncertainty,’ Matthias Geissbühler, chief investment officer (CIO) at Raiffeisen, explained on Wednesday. Given that the franc is less in demand as a safe haven, we do not expect that the Swiss National Bank (SNB) will have to resort to interventions in the foreign exchange market,’ he said.
The EUR/USD pair experienced even stronger development. After prices of 1.0903 the previous evening, the European currency fell on Wednesday morning to 1.0719. Meanwhile, EUR/CHF fell just below the 0.94 mark and is currently trading at 0.9362, just above its previous daily low of 0.9355.
/ATS
Canada
