The US elections outcome has the whole world shook, as Donald Trump unexpectedly won the US Presidential race, triggering a wave of uncertainty in the financial markets. Traders are now wondering what to expect from Forex brokers after the elections? AtoZ Forex has reached out to JustForex, inquiring on JustForex Post-US election outlook and status.
17 November, AtoZForex – Currently, with Republican Nominee having a place in the White House, it is high time to analyze the situation in the markets and start thinking about the future agenda under Donald Trump. AtoZForex team has been meeting and interviewing Forex brokers globally to get their view on the market in the wake of the Republican victory.
AtoZ Forex Industry News Manager, Kristina has spoken with the Forex broker JustForex. Below, we present to you the key highlights of JustForex Post-US election market outlook.
Kristina Frunze: First of all, I would like to know if there was any change in JustForex’s margin requirements?
JustForex: “As a short-term measure the margin requirements for FX tools of JustForex were increased by 3 times compared with default values.”
Kristina Frunze: Have you brought the margin requirements back?
JustForex: “Yes, the margin requirements have been brought back.”
Kristina Frunze: What was the most traded instrument for JustForex?
JustForex: “There was no surprising activity connected with a certain trading instrument among the clients of our company. The most traded instruments were the currency majors as usual. “
Kristina Frunze: What does JustForex research team expect for the USD until the 20th of January?
JustForex: “After the surprising victory of Donald Trump in the US president elections, the increased volatility, and trading activity was observed across the financial markets. The US dollar has significantly strengthened, compared with the basket of the main world currencies. Most of the participants in the financial markets believe that the reduce of taxes and increase of infrastructure costs promised by Trump will accelerate the US inflation process. At the moment the chances of tightening of the FRS monetary policy are estimated at more than 85%.
Currently, the currency market has stabilized. By the end of the year, the attention of investors will be focused on the FRS meeting in December and the main macroeconomic indices of the US. Our team believes that January 20, 2017, won’t bring any significant changes in the US dollar rate as the newly elected president will be able to implement all the promised reforms only after his official inauguration. In the short term, the dynamics of the majors can be influenced by the verbal interventions and the main economic statistics.”
Kristina Frunze: What recommendations can JustForex give to traders trading this week?
JustForex: “Due to the yield growth of US Treasury Bonds, the increased demand for the US dollar took place last week. The participants of the currency market thought that the Trumps’ policy, which aims at the increase of the budget costs, will accelerate inflation in the country. At the moment US Dollar Index – #DXZ6 is at the summer maximum level of 13, 5. On Monday, November 14 #DXZ6 has reached 100.22.
Nevertheless, the current technical pattern of the currency majors shows the possible correction after significant dollar strengthening last week. The significant influence on the dynamics of the main currency pairs may be caused by the publishing of the important US economic statistics:
– Thursday, November 17 – Building Permits (15:30 GMT+2:00);
– Thursday, November 17 – Core CPI (15:30 GMT+2:00);
– Thursday, November 17 – Philadelphia Fed Manufacturing Index (15:30 GMT+2:00).
Most of the participants of the currency market expect the FRS to increase the interest rates in December of the current year; that will help to strengthen the US dollar. At the moment FedWatch Tool is at the level of 85.8%. However, if the statistical data is weak this week, the dollar can be adjusted compared with the basket of the main currencies.
Our team recommends traders to find the entry points and additional confirmation of the key support and resistant levels.”
Kristina Frunze: Do you have any special promotion for traders?
JustForex: “There are no special promotions connected with the elections of the US president at JustForex.”
Do you have questions for JustForex about the market post the US elections? Let us know in the comments section below.