The U.S. dollar strengthened its position against the euro and the British pound as the investors believe that Barack Obamas clear victory in the U.S. presidential elections will help him to take measures soon to revive the worlds biggest economy.
The news that the Democrat Barack Obama won the presidency over its Republican rival John McCain created the main positive background for the dollar trading on Forex today. The Democrats also extended their presence in the U.S. senate. Meanwhile, the euro and pound declined on the expectations of the further interest rate cuts.
Obama now has all the necessary conditions (including the absolute majority win and the loyal Senate) to conduct his «change» policy that should be aimed against the crisis. The dollar may continue to rise with the growth of the confidence in the U.S. economy.
One of the anti-crisis actions proposed by Obama is the «middle-class stimulus plan» worth $175 billion, which will help to boost the spendings and will positively affect the economy. The lack of the liquidity declined world-wide as the money-market rates and the LIBOR fell.
EUR/USD fell from 1.2995 to 1.2873 as of 9:01 GMT today, while the GBP/USD rate declined from 1.5962 to 1.5913. Both currency pairs showed a strong growth yesterday.
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