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A month passes since Donald Trump’s election

Currencies Direct December 14th 2016 - 3 minute read

In the month since Donald Trump’s election, how has the US fared?
 
On 8 November, US citizens went to the polls to elect their next president. The following day it was announced that the Republican candidate, Donald Trump, had been elected.
 
It was a shock to the world. Mr Trump had no political experience and had been caught up in a number of scandals during his campaign. It did not appear to matter to the electorate, however, giving him a convincing victory.
 
So what has happened in the previous month and what is expected to change when he takes office?

 

What’s changed

 
Mr Trump has so far chosen some of the major players of his government. He has named his secretary of state, the country’s top diplomat. This is a vital role as the person who takes it on will represent the US in negotiations and summits around the world.
 
Rex Tillerson, president and chief executive of ExxonMobil, was awarded the job. In a statement explaining his selection, Mr Trump said: “His tenacity, broad experience and deep understanding of geopolitics make him an excellent choice for secretary of state.
 
“He will promote regional stability and focus on the core national security interests of the United States.”
 
Mr Tillerson’s appointment has drawn criticism from both Democrats and Republicans, however, due to his close ties with Russian leader Vladimir Putin.
 
The choice of Mr Tillerson has also attracted surprise as he has not worked in the political sphere before. It mirrors Mr Trump’s own lack of political experience, but was one of the reasons he was selected.
 
Mr Trump’s own election has won approval from far-right political party leaders around the world, particularly Marine Le Pen in France and Geert Wilders in the Netherlands.
 
This has prompted fear that those countries could elect anti-establishment leaders, which has led to the euro experiencing a subdued few weeks.
 

What will change

 
Mr Trump will be inaugurated on 20 January. From that point, he will be the 45th president of the US, giving him an enormous amount of influence on the global stage.
 
However, it is not yet certain that it will get to that point. On 19 December, members of the electoral college will vote for whether he will actually succeed Barack Obama as president.
 
Some analysts have said there is a chance that he might not gain enough votes for that to happen. However, others are looking at it as a mere formality and fully expect Mr Trump to take office.
 
When he does begin his duties as president, there is some doubt over whether he will push through traditionally Republican policies or not. He has already broken with the party line over the issue of gay marriage. Whereas Republicans have historically been opposed to the idea, Mr Trump has said he would not repeal gay marriage laws.
 
The US will be relying on Mr Trump allocating significant amounts of money towards the country, as he promised during his campaign. This could boost the economy and see the dollar rise.
 
 

Currency

 
In the month since Mr Trump was elected, the US dollar has seen huge highs and lows. In the initial few hours after the news was announced, the dollar plunged to lows not seen in many years.
 
However, that changed in the following days and weeks. The dollar has risen to 12-year highs against a basket of currencies in the period since the election.
 
Analysts have put this down to a combination of Mr Trump’s promise of spending on infrastructure and the expectation that interest rates would be raised. The US Federal Reserve is meeting this week to discuss monetary policy, including a probable rate rise.
 
The immediate trajectory of the dollar is likely to depend on what Fed chair Janet Yellen states in her speech. If she suggests that the US will experience growth in the coming year and that further interest rate increases could be on the agenda, the dollar could experience a boost.
 
Whether that is the case remains to be seen but what is certain now is that Currencies Direct can help you transfer money across to the US with a hassle-free process that eliminates the cost of dealing with your bank.
 

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