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The market continues to be consumed with developments out from the Trump administration, which are having a negative impact on the US Dollar in 2017 and also starting to weigh on risk sentiment, with equity markets pulling back on the aggressive implementation of protectionist policies. European data and Canada GDP ahead. read report
The market has already seen a good amount of volatility in 2017 on political developments, mostly out of the Trump administration but also from the UK relating to Brexit. This week, the market will get another couple of layers of risk in the form of central bank event risk and first-tier economic data risk. read report
Profit taking on US Dollar short positions has been the story in the latter half of the week and this has continued into early Friday trade. All of this is supportive of the idea that the US Dollar selling in early 2017 has been nothing more than a correction within a broader Dollar uptrend. USD GDP and durable goods ahead. read report
Interestingly, on Wednesday, US 10-year yields traded above 2.5% and US equities pushed to fresh record levels, highlighted by Dow 20k, and yet, the Buck was unable to join the party. The market continues to be less optimistic about the USD in 2017, seemingly on fear of Trump's protectionist policies and a talking down of a strong USD. read report
Into the middle of the week, the main story continues to be the selloff in the US Dollar in reaction to President Trump's focus on protectionist policies in the early days. Still, it is early and the President has also promised fiscal stimulus and tax cuts which should not be forgotten and that are Dollar supportive. read report
