GBP: The British Pound dropped significantly after Donald Trump’s election win, with GBP/USD decreasing by more than 1%. The Pound faces additional pressure as the Bank of England is anticipated to lower interest rates due to reduced inflation. Furthermore, uncertainty over how Trump’s policies might impact the UK economy is weighing on the currency, with investors remaining cautious ahead of today’s scheduled economic data and central bank announcements.

EUR: The Euro also saw a sharp drop against the Dollar following Trump’s election, with analysts warning of further declines if Republicans gain control of the Senate. Stronger U.S. economic policies, such as tariffs and fiscal measures, could strengthen the Dollar, putting more pressure on the Euro. Looking ahead, the European Central Bank may also need to cut rates in response, which could further accelerate the Euro’s fall.

USD: Meanwhile, the U.S. Dollar stayed close to four-month highs after Trump’s victory, buoyed by expectations of inflationary policies and trade protectionism. Market attention is now on the Federal Reserve’s rate decision, with a possible 25-basis point cut expected. Investors are focused on the Fed’s outlook, particularly regarding inflation, which will be a crucial factor in the Dollar’s longer-term performance.