• The Pound Sterling plunges against the US Dollar as Trump wins in North Carolina and leads in other swing states.
• Trump’s victory could significantly dent the UK’s economic growth.
• Investors see the Fed and the BoE cutting interest rates by 25 bps on Thursday.

The Pound Sterling (GBP) plummets to near 1.2850 against the US Dollar (USD) in early London trading hours on Wednesday. The GBP/USD pair faces an intense sell-off as investors rush to the so-called ‘Trump trades’ after various exit polls showed Republican candidate Donald Trump having a clear lead over Democratic rival Kamala Harris in the US presidential election.

According to the Associated Press, Trump has been announced as a winner in key swing state North Carolina and is also leading in the other six swing states: Pennsylvania, Michigan, Georgia, Arizona, Nevada and Wisconsin.

The impact of Trump leading election polls is clearly visible in risk-sensitive currencies, which are significantly down against the US Dollar. Meanwhile, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, posts a fresh four-month high at around 105.30.