The US dollar has rallied as a direct consequence of Barack Obama's victory in the US Presidential election. Equity markets in Asia also rose as expectations now are that Barack Obama's victory and Democrat gains in Congress will accelerate policies aimed at overcoming a recession.

Sterling (GBP)

The sterling remains under pressure against the dollar and the euro. Markets are anticipating an interest rate cut of anywhere between 0.5 and 1.0 per cent as the Bank looks to avert a deep recession. If the Bank of England goes so far as to cut interest rates by 1.0 per cent investors may look for a bounce rather than a sell-off in sterling.

US Dollar (USD)

The dollar fell some three per cent versus the euro until news of Barack Obama's victory prompted markets to rally around the greenback, allowing the dollar to recoup much of the losses. This historic victory is expected to usher in an era of change after eight years of the unpopular and controversial Bush administration.

Euro (EUR)

The number of unemployed people in Spain has reached a 12-year high of 11.3 per cent - the highest level in Europe. A severe slowdown in the construction industry has been one of the main causes of the economic slowdown. Recent figures showed that the economy contracted by 0.2 per cent in the third quarter compared to the previous three-month period.

Japanese Yen (JPY)

Japan's economy has joined much of the developed world in a recession, with GDP contracting for a second consecutive quarter. The Bank of Japan has already cut their interest rates down from 0.5 to 0.3 per cent while slashing its growth forecast, saying it saw no growth for Japan in the year to March 2009.