What to Look out for Today: Dollar Takes a Nose-dive?

The USD has had some rough times since the beginning of the year, this instability has been largely fueled by scandal, fear of political impotence and of course the exhaustion of the so-called “Trump Effect” – which roughly elaborates into the confidence created by President’s Trump campaign promises regarding repatriation of heavy industry and pro-growth economic reform.

Yesterday it seems that the dollar took another unfortunate slip, due to the Trump’s administration to pass yet another U.S. health-care reform bill. Not only was it not passed but at this point of the process, it is essentially completely derailed. This makes investors unsure that the Trump administration will be able to reform the economy if they are unable to pass a single health-care bill.

The GBP has also seen volatility this year and continues to experience it largely due to the beginning of a two year long Brexit process. Today we may see another dip – with the release of the UK government’s inflation data. This is on the tail of Mark Carney’s (BoE Governor) waffling on his stance regarding interest. In that last month, he went from saying rates should be preserved at current levels, to saying that they should be increased.

Currently the second round of Brexit talks are continuing in Brussels and statements coming from either UK or EU camps might cause some fluctuations in currency pairs and trading instruments tied to the two countries.

This article comprises the personal view and opinion of the STO Investment Research Desk and at no time should be construed as Investment Advice

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