USD broadly strengthened in the aftermath of Trump’s victory. Market reaction was well flagged and expected. Near term, we may still see USD supported, largely on tariffs, inflation and fiscal concerns. We also expect policymakers to be more vigilant of the potential policy risks associated with Trump as President. Hence, excessive, one-sided moves in FX markets may be countered with smoothing pressure. DXY was last at 104.80 levels, OCBC’ FX analysts Frances Cheung and Christopher Wong note.
Fed is expected to deliver a 25bp cut at the meeting
“Elsewhere, China’s NPC (4 – 8 Nov) should not be written off. The meeting is likely to factor in US election risk premium and we believe Chinese policymakers should still be determined on delivering support measures to mend the economy and repair sentiment. Larger than expected stimulus may help to support sentiment and partially offset against CNH depreciation. Over the next 24 – 48 hours, we should expect FX to continue trading with 2-way risks as markets digest election outcome, including who takes the House and if existing lawsuits against Trump will have any implications.
“FX volatility should continue to ease but remain elevated relative to year’s average. Trump's threat on tariff is clearly one of the biggest risks that markets are concerned about, but we do not know how long it takes for those policies to be in place. That said, the uncertainty may be sufficient to keep USD/AXJs supported.”
“Daily momentum is flat while RSI rose. Resistance at 105.20, 105.60 levels (76.4% fibo). Support at 104.60 (61.8% fibo), 103.70/80 levels (21, 200 DMAs, 50% fibo retracement of 2023 high to 2024 low). Moving on, FOMC is on tap next (3am SGT Fri morning). We do not expect the election outcome to impact this particular FOMC meeting and still expect Fed to deliver a 25bp cut at the meeting. Focus is on the tone and language.”
(This story was corrected on November 7 at 09:50 GMT to say, in the second title, "Fed is expected to deliver a 25bp" and not "Fed is not expected to deliver a 25bp")
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks

EUR/USD regains traction above 1.1000 ahead of US CPI release
EUR/USD has found fresh buyers and jumps above 1.1000 in the European session on Thursday. The pair gains on the German coalition deal and Trump's 90-day pause on reciprocal tariffs, which have lifted risk senitment while exacerbating the US Dollar pain ahead of the US CPI data release.

GBP/USD trades firm above 1.2850, US CPI data awaited
GBP/USD sustains the rebound above 1.2850 in European trading hours on Thursday. The British Pound capitalizes on risk appetite, courtesy of Trump's tariff pause, allowing the pair to recover ground. But further upside hinges on the US CPI data and US-Sino trade updates.

Gold price enters hotspot region with new all-time high possible
Gold price is delivering a jaw-breaking performance this Thursday in the early trading session, moving around $3,107 at the time of writing. Since Tuesday morning, the precious metal has rallied nearly 5.00%. The main driver for the rally came from the United States President Donald Trump who announced a 90-day pause to higher tariffs on 56 countries and the European Union, which will now be taxed at the 10% baseline rate.

US CPI data set to reveal March inflation dip as markets weigh impact of Trump’s tariffs
As measured by the CPI, inflation in the US is set to rise at an annual pace of 2.6% in March, down slightly from the 2.8% reported in February. Core CPI inflation, which excludes the volatile food and energy categories, is expected to ease to 3% in the same period from a year earlier

Trump’s tariff pause sparks rally – What comes next?
Markets staged a dramatic reversal Wednesday, led by a 12% surge in the Nasdaq and strong gains across major indices, following President Trump’s unexpected decision to pause tariff escalation for non-retaliating trade partners.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.