Trump effect on USD, markets



The Trump Trade reversal

Trump Effect on markets

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How to Trade President Trump

Did Trump end the greenback's comeback?

Things are not looking that great in the US economy and the dollar begins letting it go. However, the main culprit regarding the dollar's fall is the US President. Every day is followed by a new revelation, with the FBI firing and the disclosure of classified data hurting. Other major currencies are stable but also feel some pressure. And for a change, commodity currencies are enjoying a recovery...

Key Trump PromiseEffect on StocksEffect on USDEffect on Gold
Increased fiscal spending/stimulus - Particularly on infrastructure and defenseBullish - Increased economic growth and industrial production help boost equity marketsBullish - Increased spending leads to higher inflation and interest rates, pushing up USDBearish - Higher growth, interest rates, US Dollar and stocks should weigh on Gold
Lower corporate taxes - Down to 15% from 35%Bullish - Lower taxes increase after-tax cash flow and earnings, and bring income back to USBullish - Economic growth through lower taxes and fiscal stimulus boost interest rates / USDBearish - Higher growth, interest rates, US Dollar and stocks should weigh on Gold
Financial deregulation - Repeal heavy regulations on Wall Street and corporate AmericaBullish - Fewer regulatory hurdles increase financial and banking activity, fostering business growthBullish - Increased financial activity leading to economic expansion should lift interest rates and USDBearish - Higher growth, interest rates, US Dollar and stocks should weigh on Gold
Increased job creation - Retain and create jobs in the USBullish - More jobs lead to higher spending, demand and increased business growthBullish - Better employment rate leads to hawkish Fed and higher interest rates / USDBearish - Higher growth, interest rates, US Dollar and stocks should weigh on Gold
Protectionist trade policies - Tariffs and restrictions on Mexican, Chinese imports and othersBearish - Restrictions on trade can create trade wars and backlash on US companies doing business abroadBullish against targeted EM currencies, Bearish overall if trade wars resultBullish if trade wars result, which could boost gold as a safe-haven currency alternative

Watch: Trump Trades from our Panel


Donald Trump, a billionaire real estate mogul billed as the ultimate outsider, aims to shake up the US political establishment, which could potentially cause extensive market volatility along the way. Going forward, Trump should have a substantial impact on various key financial markets such as US Dollar, Euro, Yen, Pound and other important currencies as well as stocks, commodities and bond markets.

Trump was the second major-party presidential nominee in American history whose experience comes principally from running a business (Wendell Willkie was the first). By getting elected, Trump became the first United States President without prior government or military experience, and the first without prior political experience since Dwight D. Eisenhower.

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