Tempus, an exchange rate and global payments company, evaluated the current state of currency in their November Currency Outlook. Overall, the USD is poised to strengthen with a December rate hike. The market has now factored in a 92% likelihood of a rate hike. The Tempus traders completed their November Currency report just prior to the election, but the view is, regardless of candidate, that the USD is likely to strengthen further as interest rates are always a major factor in driving currencies. A lot of the USD strength in October was reflecting the impact of interest rates more than Trump/Clinton.
IBC Members can download the Currency Outlook from the members-only section of the IBC website under the Special Reports section. IBC membership is free for all regular IHA members – to learn more and to join, visit the IBC membership information page.