Trump distractions for USD - AmpGFX

Sandeep Kanihama FXStreet Contributor

The USD has continued to retreat faster than we had expected this year and has more than reversed it gains against most countries since the more hawkish than expected FOMC meeting on 14 December notes Greg Gibbs, Director at Amplifying Global FX Capital.

Key Quotes

“It is evident that some of the euphoria for US economic growth that followed the election of Trump on 8 November has dissipated. This may reflect shifting perceptions on the priorities of Trump and the ongoing combative style his presidency promises. Media coverage of Trump in the USA has focused more on his Twitter responses to various distractions unrelated to economic policy. Corporate tax reform and infrastructure spending appear to have taken a back seat to repealing and replacing Obamacare, micro-commentary on specific companies, border tax, and building a wall on the Mexican border.”

“It is beginning to look like the Trump agenda will be bogged down in issues that do little to support growth and economic confidence. This may be dampening the US stock market performance, weighing on yields and the USD.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD faces next resistance near 1.1930

EUR/USD has surrendered its earlier intraday advance on Thursday and is now hovering uncomfortably around the 1.1860 region amid modest gains in the US Dolla. Moving forward, markets are exoected to closely follow Friday’s release of US CPI data.

GBP/USD inching closer to 1.36

The Pound Sterling edged higher to 1.3640 on Thursday, recovering from an earlier pullback after stronger-than-expected US jobs data initially weighed on the pair. The Bank of England held rates at 3.75% at its February 4 meeting in a narrow 5-4 vote split, with four members preferring a 25 basis point cut to 3.50%.

Gold falls to near $4,900 as selling pressure intensifies

Gold price faces some selling pressure around $4,910 during the early Asian session on Friday. The yellow metal tumbles over 3.50% on the day, with algorithmic traders appearing to amplify the precious metal’s sudden drop. Traders will closely monitor the release of the US Consumer Price Index inflation report for January, which will be released later on Friday.

Ethereum investors face huge unrealized losses following price slump

US spot Ethereum exchange-traded funds flipped negative again on Wednesday after recording net outflows of $129.1 million, reversing mild inflows seen at the beginning of the week, per SoSoValue data. Fidelity's FETH was responsible for more than half of withdrawals, posting outflows of $67 million.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Aster Price Forecast: Demand sparks on Binance Wallet partnership for on-chain perpetuals

Aster is up roughly 9% so far on Thursday, hinting at the breakout of a crucial resistance level. Aster partners up with Binance wallet for the second season of the on-chain perpetuals challenge.