USD Mixed on Rise of Political Risk After Trump Family Emails

The dollar fell against a basket of major currencies on Tuesday, after U.S. President Donald Trump’s eldest son released an email chain citing Russian support for his father before last year’s U.S. election.

Donald Trump Jr. was told a Russian prosecutor was offering his father’s presidential campaign incriminating information about Democratic rival Hillary Clinton as part of Russian government support, according to an email chain that he released on Tuesday.

“At the very least, these types of headlines play up concerns about dysfunction in Washington and the inability of this administration to pass any meaningful legislation, particularly related to fiscal stimulus,” said Omer Esiner, chief market analyst at Commonwealth FX in Washington.

The dollar index .DXY, which tracks the greenback against six major rivals, turned negative on the day to fall to a more than one-week low of 95.673. The index was down 0.31 percent.

“The Russian investigation has probably been the biggest mark against the Trump administration, and the more we get to know the more the markets gets concerned,” said Alfonso Esparza, senior currency analyst at OANDA in Toronto.

Investors are waiting for U.S. Federal Reserve Chair Janet Yellen’s semi-annual monetary policy testimony before Congress on Wednesday and U.S. consumer inflation data on Friday.

via Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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