US Dollar Lower After Few Details on Trump Policies

The U.S. dollar on Monday weakened against a wide range of currencies amid disappointment that President Donald Trump’s inauguration address proved light on detail over his plans for economic stimulus.

Trump’s statements, including his address, that emphasized an “America first” policy, also stoked concern that his presidential platform, painted with a nationalist and protectionist brush, could pose a threat to a recovery in the global economy.

“At the turn of the year, the U.S. dollar was priced for strong growth and rising yields. Now the pendulum is swinging towards trade wars and slower growth,” said Sean Callow, currency strategist at Westpac.

The WSJ Dollar Index BUXX, -0.55% a measure of the U.S. currency against 16 others, was down 0.5% at 91.11. The U.S. Dollar Index DXY, -0.36% which gauges the greenback against six currencies, declined 0.4% to 100.33.

“Trump’s stated preference for a weaker dollar and his intense focus on U.S. trade, clashes with the promised 4% growth rate that would send yields and the U.S. dollar sharply higher,” he said.

via MarketWatch

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza