"The US dollar weakened sharply against other major currencies during election night as the prospects of a Trump victory strengthened. The weakening of the dollar is a reaction to the political uncertainty surrounding the US due to the election outcome.

Although USD depreciation is likely to persist as long as political uncertainty predominates, our assessment is that Trump's victory should be able to benefit the dollar in the long term, mainly in relation to minor currencies.

Trump's economic policies, the threat to global trade and growing geopolitical uncertainty should create an environment that is favourable to the dollar against many currencies, including the euro and Swedish krona".

Copyright © 2016 SEB, eFXnews™