ActionForex.com
Feb 27 11:07 GMT

Sponsors

Forex Expos

Dollar Stabilises as Trump Conference Looms Print E-mail
Daily Forex Fundamentals | Written by ForexTime | Jan 11 17 13:05 GMT

Dollar Stabilises as Trump Conference Looms

The Greenback glided higher on Wednesday as investors prepared for Donald Trump's anticipated formal news conference. With today's press conference the first official one since the market shaking presidential victory in November, financial markets could turn volatile. Uncertainty still remains a key issue when dealing with Trump while concerns linger over the President-Elect saying something which could negatively impact the Dollar.

A multitude of events have taken place since Trump's victory and such may translate to an influx of questions from the reporters, something investors will pay close attention towards. Markets are also expecting Trump to reiterate his economic policies for fiscal spending and how he plans to make America great again. With Trump repeatedly sharing his views on trade and China on social media, attention may be directed towards his thoughts on global trade and relations with China in the formal conference.

Emerging markets await Trump

Emerging markets could come under renewed pressure if U.S President-Elect Donald Trump reiterates his protectionist trade views during this evening's news conference. The Mexican peso has already tumbled to historical lows amid fears of Trump discarding a key trade agreement with Mexico while the Chinese Yuan is on the defence. The growing threat of Trump maintaining a harsh stance on China trade and scrapping the Trans Pacific Partnership (TPP) could expose Asian currencies to further downside risks.

Market participants may observe if Trump provides additional clarity on how his proposed fiscal stimulus will boost US economic growth. The Greenbacks aggressive appreciation has punished emerging market currencies considerably with speculations of higher US rates sparking capital outflows. A situation where President-Elect Donald Trump repeats his plan to boost US growth via tax cuts and infrastructure spending could elevate the Dollar consequently pressuring EM currencies further.

Currency spotlight - USDJPY

A strengthening Dollar has been the engine behind the USDJPY incredible gains on the daily charts. This pair is heavily bullish as there have been consistently higher highs and higher lows. Bullish investors may exploit a breakout above 116.500 to send the USDJPY towards 117.500 and potentially higher. Bulls remain in firm control as long as prices can keep above the 114.50 higher low.

 

About the Author

Forex Time

The FXTM brand provides international brokerage services and gives access to the global currency markets, offering trading in forex, precious metals, Share CFDs, ETF CFDs and CFDs on Commodity Futures. Trading is available via the MT4 and MT5 platforms with spreads starting from just 1.3 on Standard trading accounts and from 0.1 on ECN trading accounts. Bespoke trading support and services are provided based on each client's needs and ambitions - from novices, to experienced traders and institutional investors. ForexTime Limited is regulated by the Cyprus Securities and Exchange Commission (CySEC), with license number 185/12, licensed by South Africa's FSB with FSP number 46614, and registered with the UK FCA under reference number 600475. FT Global Limited is regulated by the International Financial Services Commission (IFSC) with license numbers IFSC/60/345/TS and IFSC/60/345/APM.

Facebook MySpace Twitter Digg Delicious Google Bookmarks 

Analysis Reports

Central Bank Analysis
Economic Data Reviews
Technical Analysis

Forex Brokers

ActionForex.com © 2017 All rights reserved.