According to BlockBeats, on November 22, foreign exchange traders bet that Trump's policies will cause volatility in the $7.5 trillion daily trading volume foreign exchange market. Investors believe unpredictability will be a hallmark of Trump's term.
It is currently unclear how quickly Trump will implement policies that may affect currencies like the euro, such as trade tariffs. How countries will respond to Trump's measures and their impact on the market remains uncertain.
Nomura Securities G-10 Strategy Head Dominic Bunning stated that Trump's policies could create greater macroeconomic divergence, leading to increased foreign exchange volatility. The market expects a stronger dollar under Trump, supporting the argument for higher hedging costs.