020 7898 0500The dollar (USD) has dipped as traders await President Elect Trump’s press conference today, which is less likely to be scripted than his inauguration speech on 20th January. This means it is less predictable in terms of what he may say, although he is likely to provide himself with an opportunity to highlight which, if any, of his election pledges he will actually pursue. Investors are concerned that Donald Trump may take an aggressive stance on issues such as trade policy and relations with China.
The dollar index, which measure the currency against a basket of six major currency pairs, has climbed 4 percent since Trump’s election in November. This is largely because investors believe his promises of fiscal expansion will boost inflation and growth, leading to interest rates being increased at a faster pace than currently projected by the US Federal Reserve.
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