020 7898 0500Donald Trump’s first 10 days have been interesting to say the least. The President has signed as many executive orders in a week and a half as you would expect in his first 100 days in charge. The dollar (USD) has started to weaken as markets are now becoming nervous over his presidency, and his recent decision to fire the government’s top lawyer has only added to these concerns. Potentially confirming market thoughts that the administration may be trying to talk its currency down it was suggested byTrump’s new National Trade Council, Peter Navarro, that Germany was benefitting from a “grossly undervalued” exchange rate drove the euro (EUR) 0.6% higher and sparked a broader dollar fall.
Tomorrow we have the Federal Reserve’s monetary policy statement and the market will be anxiously waiting for any clues around the dollars future form. While the markets still have 3 interest rate hikes priced in this year, this could change quite quickly given the unpredictable start of President Trump’s term. So expect the markets to heavily interpret the statement made by Federal Reserve Chair Janet Yellen.
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