By: DailyForex.com
The US Dollar fell broadly as stunned FX traders pondered the latest news of a Trump win for the US President. Though Hillary Clinton was heavily favored, the electoral votes fall into the Trump camp. Mrs. Clinton has not yet conceded the fight, however. Currency markets are in full retreat and headed to the safe haven assets, including the Japanese Yen and the Swiss Franc as the Trump victor fuels worries over both political and economic uncertainty. The likelihood of a December rate increase has also been called into question.
As reported at 10:27 am (GMT) in London, the USD/JPY was trading at 103.129 Yen, down 1.91%; earlier, the pair had hit a session low of 101.157 Yen before recovering, but is also well off the high of 105.472 Yen. The USD/CHF is down 0.40% at 0.9752 Swiss Francs; earlier in the session the pair hit a low of 0.954 Swiss Francs. The EUR/USD is up 0.66% to trade at $1.1087 while the GBP/USD was at $1.242, a gain of 0.39%.
Mexican Peso Freefalls vs Greenback
In his victory speech, Trump’s word had a reassuring effect on the markets as he didn’t speak of the NAFTA deal or the building of the border wall between the US and Mexico. That helped to pare some of the Dollar’s losses. The Mexican Peso, however, lost nearly 13% and hit a record low before recouping; the USD/MXN is currently trading at 20.040 Mexican Pesos, a 20% gain.