According to BlockBeats, on November 22, foreign exchange traders bet that Trump's policies will cause volatility in the foreign exchange market, which has a daily trading volume of $7.5 trillion. Investors believe that unpredictability will be a feature of Trump's term.
It is unclear how quickly Trump will implement policies, such as trade tariffs, that could affect currencies like the euro. How countries respond to Trump's measures and their impact on the market remain unknown.
Dominic Bunning, head of G-10 strategy at Nomura Securities, said Trump’s policies could create greater macroeconomic divergence, leading to greater foreign exchange volatility. Market expectations of a stronger dollar under Trump support the argument that hedging costs will rise.
