Tax Reforms impact on MYR

What would cause the US dollar to weaken?

If Trump does not get the approval for his reforms on the tax bill, it would cast severe aspersions on the confidence of his leadership and consequently cause the dollar to weaken.

Oanda head of trading Asia-Pacific Stephen Innes believes the US dollar could face headwinds next year as the mid-term US elections may not swing in favour of Trump.

“With the President’s approval rating staying low, its possible the future mid-term US elections will swing and could possibly reduce the majority in both House and Senate and form a partisan perspective,” he said.

Innes said if such a scenario pans out, it would be impossible for Trump to push through any policy given his tenuous position.

“So without the 2018 infrastructure spend, markets may recalibrate their Federal Reserve expectation lower and weigh on US dollar sentiments,” he said.

The Star Malaysia

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.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes