Forex Market Update: Trump’s Election Surge Lifts Dollar and Market Gains – Key Currency and Economic Insights for Traders (GMT+6)
Author: Rana Das, CEO of Forex Wave Expert
Introduction
As the U.S. presidential election unfolds, markets are showing volatility, especially with Trump’s current momentum boosting the dollar and stock market gains. Forex traders are keenly watching major economic data releases and election results, which could set the tone for global currencies and commodities. This article covers key analyses on major currency pairs (EUR/USD, GBP/USD, USD/JPY), XAU/USD (gold), and cryptocurrency trends as they respond to election dynamics and economic news.
U.S. Election Surge Fuels Market Moves
The latest surge in U.S. stocks reflects market optimism around Trump’s performance in the presidential race. On Tuesday, the Dow Jones (US30) rose by 1.11%, the S&P 500 (US500) gained 1.23%, and NASDAQ (US100) climbed by 1.32%. Economic data contributed to this optimism, with the ISM Services Business Activity Index reaching 56.0, marking a two-year high and suggesting a possible “soft landing” for the U.S. economy.
Despite a mixed reaction in the forex markets, the dollar showed strength, which could impact currency pairs involving USD as election results unfold.
Forex Market Update: Key Currency Pair Analysis
EUR/USD Analysis
- Levels: Open: 1.0877, Close: 1.0928 (+0.47%)
- Trend: Bearish, with support at 1.0716 and resistance near 1.0933
The EUR/USD is experiencing a bearish trend, impacted by the dollar’s surge. A Trump victory could further strengthen the dollar, pulling EUR/USD lower. Traders should watch for potential price action around support levels at 1.0716, as a break below could signal further downward movement.
Market Events to Watch:
- 10:55 – German Services PMI
- 11:00 – Eurozone Services PMI
- 16:00 – ECB President Lagarde’s Speech
GBP/USD Analysis
- Levels: Open: 1.2951, Close: 1.3041 (+0.69%)
- Trend: Downtrend with support at 1.2848 and resistance near 1.3023
GBP/USD faces downward pressure amid expectations for a Bank of England rate cut. Election-driven dollar strength is likely to add pressure, with traders eyeing GBP/USD support at 1.2848. A break below this level could extend the bearish trend.
Market Event to Watch:
- 11:30 – UK Construction PMI
USD/JPY Analysis
- Levels: Open: 152.10, Close: 151.60 (-0.33%)
- Trend: Bullish with support at 152.65 and resistance at 154.31
USD/JPY remains bullish, with potential buying opportunities near support at 152.65. A Trump win could reinforce this trend as investors lean towards safe-haven assets.
Market Events to Watch:
- 01:50 – Japan Monetary Policy Meeting Minutes
- 02:30 – Japan Services PMI
XAU/USD (Gold) Analysis
- Levels: Open: 2738, Close: 2744 (+0.22%)
- Trend: Bearish with support at 2704 and resistance at 2750
Gold prices have been pressured as the dollar strengthens. A Trump win may create short-term volatility in gold prices. Resistance at 2750 is key; a break above this level could indicate renewed bullish sentiment in gold.
Cryptocurrency Market Update: Bitcoin Surges Amid Election Hopes
Bitcoin (BTC/USD) recently reached a new high of $75,000 as Trump’s early lead in the election raised hopes for crypto-friendly policies. Trump’s stance on digital assets has been generally supportive, contrasting with the cautious approach of Democratic candidate Kamala Harris. Traders in both forex and crypto spaces should prepare for high volatility as election results unfold.
European and Asian Market Reactions
European indices saw gains, with Germany’s DAX (DE40) up 0.57% and France’s CAC 40 (FR40) up 0.48%. However, the UK’s FTSE 100 (UK100) fell slightly by 0.14%, likely reflecting concerns over trade policies under a potential Trump administration. Asian markets had a mixed day, with Japan’s Nikkei 225 (JP225) rising by 1.11% and Hong Kong’s Hang Seng (HK50) gaining 2.14%.
Economic Calendar for November 6 (GMT+6)
To make informed trading decisions, forex traders should monitor today’s key economic events:
- 01:50 – Japan Monetary Policy Meeting Minutes
- 02:30 – Japan Services PMI
- 10:55 – German Services PMI
- 11:00 – Eurozone Services PMI
- 11:30 – UK Construction PMI
- 16:00 – ECB President Lagarde’s Speech
- 17:00 – Canada Ivey PMI
- 17:30 – U.S. Crude Oil Reserves
Conclusion
With the U.S. election and critical economic releases shaping market sentiment, forex traders should stay cautious. Currency pairs involving USD, EUR, JPY, and GBP are likely to see significant movement as election results and central bank policies unfold. Stay updated on these key events to navigate the high volatility and potential opportunities in the market.
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