The US dollar remains firm on Thursday and continued to strengthen against most of its major counterpart, riding on the wave of fresh positive sentiment after investors started to think that Trump’s presidency may not be bad for financial markets as initial expectations showed.

The greenback received additional support from upbeat US weekly jobless claims that were released at the beginning of the US session and showed dip of 11,000 persons filling for initial jobless benefit, decreasing from 265,000 previous week, to 254,000 today.

Dollar/yen was the top performer on Thursday, as the pair rallied near 107 barrier, advancing 1.15% since opening until the time of writing.

US dollar index was also among top gainers, maintaining strong bullish sentiment that pushed the index further up on Thursday, to pressure recent peak at 99.09. Dollar index was up 0.47% from Thursday’s opening until now.

On the other side, Sterling showed resilience and did not follow overall dollar-bullish sentiment after Trump shock. Cable bounced from Wednesday’s low and remains tall in early US session hours on

Thursday, on hopes that special relationship between US and UK may be enhanced under Trump, as he supported Britain’s vote to leave the EU. The notion is supported on comparison of ranges of two major pairs, EURUSD and GBPUSD. During past 36 hours Euro/dollar moved within 430-pips range, while range of Cable was only 195 pips.

US stocks were also in strong rally after markets digested news from election. Dow Jones hit a record high on Thursday. Jump of global stocks was triggered after investors bet that new president would lead a shift away from austerity policies.

Investors are seeing Trump’s policies such higher defense and infrastructure spending, tax cuts and deregulation of banks and as being more business-friendly than Democrat Hillary Clinton’s position of maintaining status quo.

Earlier today, stocks in Asia rallied strongly, with European stocks also being higher in European session.
On the other side, Gold slid further on Thursday, after fresh bullish sentiment boosted dollar and sidelined earlier strong demand for safe-haven assets. Spot gold hit new nearly two-week low at $1262 and is so far down 0.78% from Thursday’s opening.

 , Market Analysis