Equity markets revive but dollar sinks anew
|Trump's latest u-turn has bolstered stocks but traders continue to flee the US dollar, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.
Stocks digest the latest TACO
Stock markets have made further gains following last night’s abrupt solving of the Greenland crisis. Trump’s ability to escalate and then suddenly reverse course with no apparent hit to his reputation is remarkable, and provides opportunities for nimbler traders. Long-term investors just need the ability to shrug wearily and let the volatility run its course. Rotation continues apace in markets, as US small caps lead the way while tech lags behind, providing evidence of healthy digestion in markets.
Dollar weakness is back
While equities have rebounded, the same cannot be said of the US dollar. Despite a recovery yesterday traders continue to dump the greenback as the impact of the country’s scattergun approach to policy becomes clear. What seems a cornerstone one day is dumped the next, and that’s without considering the current war on the Federal Reserve.
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