The US dollar has lost ground today and has done so in fashion, dropping nearly a full 100 points in the DXY from 102.95 to 101.97 in response to Trump's presser today.
This event has occurred just 9 days before his inauguration in a delayed event that had been scheduled to take place in December - there was nothing to support the dollar other than "everything is going to be great, the best, amazing," and the market isn't buying that so much these days...we need fundamental fiscal plans now from Trump, not presidential rally style hype.
Trump's address was optimistic and he used the same rhetoric that won him the presidential race to the White House, talking about positive business reforms for the US economy, job creation and friendly geopolitical ties while defending his position on the recent allegations in respect to the 'rigged election' news, palming it off as fake news and was not allowing CNN to question him later in the presser.
"Reports that a file from a former UK intelligence officer that has circulated among policymakers and reporters for some time have been unable to derail the dollar, which is edging higher against most of the major currencies today. The reports claim that Russia collected damaging material to try to blackmail Trump and that senior people close to the President-elect were in contact with Russia during the campaign," explained analysts at Brown Brothers Harriman.
The main theme was around a conflict of interest in respect to his international business and the constitution - Trump has handed over his business interests to his family to run instead. Meanwhile, the dollar remains soft and continues to lose ground in 2017 after a rally last year on the back of the Fed and Trump's policies. DXY is trading below the 102 handle with eyes on the Jan lows to 101.30.
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