RBS bank on Trump victory: which way will currencies head now?

RBS believes that the EUR/USD will remain relatively stable:

"The fall in the stock markets reduces the likelihood of a rate increase in December but the EUR/USD will struggle to break the 105-1.15 range.

We expect the ECB to extend its QE efforts until the end of 2017, which should keep the EUR/USD in this range.

The GBP/USD also benefited from the US vote. We remain of the view that the cable will climb up to 1.30 this year as a harsh Brexit is less likely.

We expect that the new lows on the USD/JPY will be limited because of the risk of direct intervention on the forex by the BoJ.

In the medium term, the prospect of tax cuts in the US and increased infrastructure spending should support risk sentiment." says RBS bank.