The ‘mighty’ U.S. dollar remains under pressure across the board since Trump’s inauguration speech on Friday still did not provide investors with clarity on his tax reform and fiscal spending plans – the speech reiterated protectionism, a word that global investors fear.
The dollar is mixed against majors after the inauguration of President Trump. The markets did not get enough information on Friday to support the dollar as the tangible pro-growth agenda items were missing from the event. Trump’s speech was delivered in his combative style and he made a pledge to put America first. The protectionist message did not resonate with markets as the dollar and stocks fell.
With Inauguration Day upon us, the US dollar retreated from earlier highs on Donald Trump’s recent call for a more competitive greenback. As the world’s sole reserve currency, when the dollar goes, so does the rest of the world. In our new series, we look at how post-election forex challenges could affect dollar-based corporate payments and transfers in the months ahead.
This is a busy holiday-shortened week for capital markets. Today, U.S banks will be closed in observance of Martin Luther King Day.
On Tuesday, U.K’s PM Theresa May is expected to call on the country’s populace to reject the hostility of the Brexit referendum in a speech that being billed as setting the stage for a “hard” exit from the E.U. The pound’s plummet overnight to last Octobers ‘flash’ crash levels (-1.6% to £1.1987) seems to have got ahead of her.
The defining moment of the week for the USD came as the first press conference of the President-elect Donald Trump unfolded. Few details on topics the market cared like infrastructure spending or fiscal stimulus were shared while the most combative aspects of his campaign were in full view. Inauguration on Friday, January 20 starts the countdown for the first 100 days of the Trump era that is expected to deliver bold action that could see the USD appreciate across the board.