LONDON, November 11, 2016 /PRNewswire/ -- "Brexit has factored in a 15-18% rise in fuel prices next year due to the fall in a value of Sterling. Could a fall in the value of the dollar after Trump's victory offset that rise with a fall in the value of the dollar against the pound? Immediately after the result, there was a fall in the value of the dollar; this should make energy cheaper, as fuel is priced in dollars, but what will happen in the short to medium term? The scenario that Trump will be a catastrophe to the world markets has led to a short term fall, but the market should calm down after the unexpected shock. The rally will depend on what Trump does rather than what he has said he will do. The American political system is based on checks and balances. Obama failed to deliver much of his program because he could not get it passed Congress. The Senate and House of Representatives are now both in Republican hands, but the Republican Party itself, is not fully backing Trump. It is likely that the wild promises that he has made will meet a wall (not built by Mexicans), past which he will not be able to progress a lot of his agenda. Short term turbulence will settle down as happened in the case of Brexit, but the underlying risk of a populist President trying to match his unrealistic rhetoric to action, will be a constant destabilising influence on the markets. This is not scare mongering but based on what has already happened, should households and companies need to factor in a rise in energy costs? Energy prices closely match the ups and downs of Sterling's or dollar's value, really due to an inability of energy companies to absorb the rise of the commodity prices in an already extremely competitive market, which has very little profit margin. To protect themselves, they will need to hedge against the risks, the cost of which will be passed onto the consumer.