020 7898 0500Last week was the first time we’ve seen investors start to react to the problems associated with Donald Trump’s administration. It began with the surprise firing of ex-FBI Director James Comey, and continues as fresh scandals threaten to engulf his regime.
On Sunday Trump addressed the leaders of 40 Muslim nations in the Saudi capital, signalling a move away from the anti-Islam rhetoric of his campaign. However, the markets are yet to react, as the controversies of the administration make it difficult for him to get any significant fiscal stimulus passed through Congress in the near future.
Markets will continue to pay particular attention to political developments in the US, if only to help them formulate ideas on what might happen to the dollar. Tomorrow, the Fed minutes will be released, and could support the dollar well, especially if the tone reinforces what we’ve heard in previous months.
