Since its local low at the beginning of October, the dollar has gained 6%. This is the most dynamic increase since the beginning of consolidation nearly two years ago.
The catalyst for such a strong move was, of course, the presidential elections and the extension of the so-called Trump Trade. However, on other instruments (stocks and bonds), we are already observing a slowdown in gains and some profit-taking. In contrast, the USD continues to appreciate. The USDIDX is trading today up 0.16% around 106 points. The market has fully priced in Donald Trump's victory, with gains even taking on a more speculative and euphoric tone. Considering that the Republicans will take power at the end of January 2025, markets are already pricing in Donald Trump's presidency before the official transition.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appFrom a technical perspective, the last six weeks of dynamic gains have pushed the USDIDX index to the upper boundary of a two-year consolidation channel above 106 points. Furthermore, strong moves in the dollar are being observed during a period when the Fed has started cutting interest rates. Given this, the potential for further gains seems limited. For bulls, the most important resistance level remains the zone above 106 points.
_5c85dd2149.png)
Source: xStation 5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
