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CALMER DAY

EUR/USD has settled today after a complete roller-coaster of a session on Wednesday. Huge swings of 300 points or more have calmed and currently sits at 1.09.
The Dow has hit a record high spurred on mainly by Donald Trump's first speech after winning the election. Initial fears of trade wars and agreements being ripped up were quickly dispelled by Trump earning the Dow a 900 point climb after losing 700 points immediately upon the announcement being released. Make no mistake, this huge swing doesn't happen often but as stated yesterday, volatility is back!

TRUMP TRIUMPHS

The immediate reaction to the news that Donald Trump had triumphed in the Presidential election was one of total shock to the world's financial markets.
Stocks dropped on the news as currencies surged higher against a U.S. dollar battering. At one point EUR/USD bounced over 300 points.
As the day has progressed, much of these gains have been wiped with the dollar recovering along with stocks.
A Fed interest rate hike in December now looks more likely. Expect increased volatility in the coming days and weeks.

STERLING TAKES A POUNDING!

Sterling was hit hard in overnight trading. It was the second biggest drop against the USD in history. Two historic sell-offs in less than a year, the first being in the immediate aftermath of the Brexit vote in June. Will it drop further that is the big question?

US Government debt level increases

US Government debt increased by $1.4 trillion by the end of 2016 fiscal year . Debt now stands at an incredible $19,573,444,713,936.79. Good luck Mr Trump! Good luck Mrs Clinton!

OPEC Cut Oil Production

After many hours of negotiating it was agreed that a cut in production was needed, first time in 8 years, production limit of 32.5mn to 33mn barrels is set. Bent crude jumped from $45.70 to $48.76 on the news. There are still some finer details to be agreed and a sub committee has been appointed to address these, primarily market share.

FED & Bank Of Japan both keep rates on hold

With FED unchanged and increased likelihood of hike in December the knee jerk reaction was USD across the board lower albeit benign and we remained in pretty much the same trading ranges. Bank of Japan also kept rates on hold but it said it would make yield-curve control a centrepiece of its new policy framework and buy 10-year Japan government bonds (JGBS) so that the yield would hover around 0% while keeping a lid on short term rates.

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