{"id":15687,"date":"2024-11-07T00:26:25","date_gmt":"2024-11-07T00:26:25","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=15687"},"modified":"2024-11-07T00:26:25","modified_gmt":"2024-11-07T00:26:25","slug":"usdx-hits-four-year-high-as-trump-re-elected","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/usdx-hits-four-year-high-as-trump-re-elected\/","title":{"rendered":"USDX Hits Four-Year High as Trump Re-Elected"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>Listen to the article here:<\/em><\/p>\n\n\n\n<figure class=\"wp-block-audio\"><audio controls src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/11\/15687.mp3\"><\/audio><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Dollar index rose 1.7%, its biggest one-day jump since 2020.<\/li>\n\n\n\n<li>Trump\u2019s re-election fuels expectations of inflationary policies, lifting USDX.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p class=\"wp-block-paragraph\">The dollar index (USDX) shot up 1.7% on Wednesday, marking its largest single-day gain in four years, as Trump\u2019s re-election stirred anticipation of pro-dollar economic policies.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Stocks hit all-time highs, bond yields jumped and the dollar saw its biggest surge since March 2020 as investors reacted to Trump&#39;s win <a href=\"https:\/\/t.co\/AgAZeNZRV5\">https:\/\/t.co\/AgAZeNZRV5<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1854177338864349244?ref_src=twsrc%5Etfw\">November 6, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Traders responded swiftly, pushing up the dollar and pricing in Trump\u2019s expected tax cuts and tariffs that could drive inflation. This surge in USDX signals that the dollar is back in focus, reflecting strong expectations for growth and renewed \u201cTrump trade\u201d policies, which previously rallied markets.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/11\/image-16-1024x438.jpeg\" alt=\"\" class=\"wp-image-15688\" style=\"width:1449px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><em>Picture: The USDX chart shows recent bullish momentum with a rise to 105.325, but signs of consolidation near 105 suggest potential resistance ahead, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" title=\"\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The dollar\u2019s momentum weighed on other currencies, with the euro dropping 1.8% to $1.0730, a sharp fall not seen since Brexit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>See also: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/us-stock-futures-dollar-rise-as-early-results-favour-trump\/\">US Stock Futures, Dollar Rise as Early Results Favour Trump<\/a><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Many traders worry that higher tariffs from Trump could slow global trade, especially impacting Europe. USD\/JPY rose 2% to 154.59, putting the <strong><a href=\"https:\/\/t.co\/4iAAtBOXzH\">yen near intervention levels<\/a><\/strong>, while the Mexican peso tumbled over 3%, hitting a two-year low.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Inflation Fears Drive Yields Higher<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The dollar\u2019s strength also rippled through the bond market. U.S. Treasury yields jumped, with the 10-year yield up 14 basis points to 4.4343%, marking its biggest gain in nearly seven months.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Traders expect that Trump\u2019s policies will drive inflation, <strong><a href=\"https:\/\/t.co\/iMlU6DPxVO\">creating less room for the Fed to cut rates<\/a><\/strong> aggressively, further supporting USDX.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The 30-year yield saw an even larger rise, highlighting how strongly markets are reacting to potential fiscal changes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Global Impact and Emerging Market Strain<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Trump\u2019s re-election is creating waves beyond the U.S., with emerging markets feeling the pressure of a stronger dollar.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In China, where trade tensions could re-escalate, the offshore yuan fell to 7.1969 per dollar, despite efforts by Chinese banks to support the currency. The euro and British pound also <strong><a href=\"https:\/\/t.co\/7y40xPVWWt\">weakened<\/a><\/strong>, with USDX\u2019s strength echoing across global markets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Looking Ahead for USDX<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As USDX gains momentum, the dollar looks set for further strength if inflationary pressures hold and the Fed remains cautious. However, the dollar\u2019s rise could add volatility, particularly if Trump\u2019s trade policies intensify global economic tensions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The dollar index\u2019s path forward now hinges on how these anticipated changes in fiscal policy play out on the global stage.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Start trading now \u2014 click\u00a0<\/strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\"><strong>here<\/strong><\/a><strong>\u00a0to create your live VT Markets account.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The dollar index (USDX) surged as markets rallied on Trump\u2019s re-election, anticipating inflationary policies and stronger U.S. yields. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[28,31],"class_list":["post-15687","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-dollar","tag-indices"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15687","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=15687"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15687\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=15687"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=15687"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=15687"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}