“After a neck-to-neck race to presidential win, Donald Trump crossed the majority mark to win the 2024 US Election, but what does it mean for the global financial markets?”

After the conclusion of the 2024 U.S. presidential election on Wednesday, the news of Trump’s presidential win might have you wondering, what’s next for the dollar, gold, and international currencies? With Trump back in the White House, the markets are seeing fast shifts, and you might notice a few unique trends taking shape. In this article featuring the US Election Market Impact, we’ll walk through what’s happening with major currencies, gold, and other global investments, and how you can stay prepared in these changing times with YaMarkets.

How the Dollar Reacted to Trump’s Victory

Right off the bat, Trump’s win has driven the U.S. dollar higher. Investors flock to the dollar because Trump’s policies usually mean more spending and tax cuts, which makes them feel secure about the dollar’s future value. Right after the election, the dollar shot up to its highest point in four months. For forex traders, this boost in the dollar’s strength opens up a lot of action, especially if you’re trading against Asian currencies, which tend to react quickly to U.S. election outcomes.

The Japanese yen and Chinese yuan both took a hit as investors scrambled to buy dollars. China’s response? The government is stepping in to support the yuan, trying to keep its value from sliding too much. For traders on YaMarkets, this could mean a chance to trade on fluctuations in USD/CNY or USD/JPY as the dust settles and China adjusts its currency.

The Response and Plans of The Federal Reserve

The Federal Reserve has its own response to Trump’s victory. They’re expected to cut interest rates by a quarter-point, which will have two effects: lowering borrowing costs and supporting the dollar’s overall value. Lower rates usually make the dollar less attractive, but Trump’s inflation-driven policies, like higher spending and trade tariffs, are keeping the dollar up for now.

If you’re trading with YaMarkets, keep an eye on these rates. The central bank’s moves can tell you a lot about how long the dollar might stay strong, especially if inflation starts to kick in. Plus, other major economies are also responding: the Bank of England is planning to lower rates, and that’s putting pressure on the British pound against the dollar too.

The Ripple Effect on Global Currencies

With Trump’s “America First” approach, countries that rely heavily on trade with the U.S., like China, Japan, and Singapore, are seeing mixed reactions. China is especially bracing for possible new tariffs, which Trump has said he’ll impose to protect American jobs. This kind of trade tension is nothing new, but it’s a major factor in why currencies in Asia are feeling the heat.

During Trump’s last presidency, China’s stock market fell over 25% in response to tariffs. After the US Election Market Impact report, you could find trading opportunities with YaMarkets in such trends, like if China’s yuan weakens again under renewed tariff threats. But there are some perks here too: Japan might actually benefit from the U.S.-China split as companies look to Japan to fill supply chain gaps.

Gold Took a Significant Hit

Gold, usually a safe haven in times of uncertainty, is falling in value. Why? With Trump’s win decided quickly, people feel more secure taking risks in stocks and the dollar rather than holding onto gold. In fact, gold has dropped 3% in the days following the election, trading around $2,650 per ounce. For those who typically see gold as a hedge, it might be a good time to wait or look at other assets.

But don’t count gold out just yet—if inflation does rise from Trump’s policies, gold could bounce back as investors look to hedge against a weaker dollar. YaMarkets provides tools and resources to help traders learn forex trading watch these shifts and understand how global events like the US Election, impact different assets.

Keep Calm and Trade On With YaMarkets | Learn Forex Trading

The markets are always heading towards a certain direction and with the policies enacted by Donald Trump, it is almost certain that the trade, inflation and interest rates will be impacted. Although these changes might be drastic, they also create chances of new ones. One can gain the upper hand in forex and investment markets by being up-to-date with current events and observing movements in central banks by following and trading with YaMarkets.

At YaMarkets, we know these global changes impact your trades, and we’re here to help. Through tools on our trading platform and resources on the YaMarkets Academy app, we make it easy for traders of all levels to learn forex trading stay up-to-date and be prepared for big market moves like these. 

Risk Warning: An investment in derivatives may mean investors may lose an amount even greater than their original investment. Anyone wishing to invest in any of the products mentioned here should seek their own financial or professional advice. For more information click here!