Thursday 10 November 2016

How Trumpism Could Affect Your Holiday Conversion Rates?


The world was shocked as Donald Trump won the US election against Hilary Clinton with 48% of the vote.

Despite a series of controversies including a record of racist and sexiest behaviour, the Republican nominee achieved one of the most improbable political victories in US history.

But how will his presidency affect Brits travelling to America and elsewhere in the world?

The pound was expected to make strong gains against the dollar if Trump won the election.

Analysis from Alan Ruskin at Deutsche Bank suggested that the pound could gain by about 2% against the US dollar as a result of the Republican win.

"The dollar is getting slammed as the market prices in the latest 73% probability of a Trump presidency," AFEX currency specialist Trevor Charsley said ahead of the results.

"EURUSD has gained 2 per cent from its lows but the Mexican peso has lost 10% in three hours."

"The US asset markets have slumped as well with the S&P future falling 5% as well. The atmosphere in trading rooms is reminiscent of the Brexit vote," he added.

But while the exchange rate has been affected, the pound hasn't yet gained as much as predicted. The pound to dollar exchange rate today is 1.2430, up 0.41%. The day's best rate is currently 1.2548.

This does still mean Brits travelling to the USA will get more bang for their buck and gains are expected to rise when the US market opens up in a few hours – so keep your eyes on the market.

The Mexican peso nose-dived to an all-time low against the dollar. While the Japanese yen and gold seem to be safe-haven for investors.

"Gold was understandably the rare-winner this morning, rising 2.5% with plenty more growth likely to come in the next few days and weeks." said Connor Campbell of Spreadex.

So if you've got a shed load of gold stashed away, now would be a great time to sell it.

To check latest currency convertion rate please check Google's Currency Converter.



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