Trump fulfills some campaign promises: Will USD resume upward strength?

Trump fulfills some campaign promises: Is dollar set to resume upward strength? U.S. President Donald Trump has fulfilled some of his promises made on the campaign trail since assuming office on 20 January. He has maintained a heavy focus on trade, creating jobs and curtailing immigration.

26 January, AtoZForex – On Monday, Trump implemented a hiring freeze for most federal agencies, withdrew from a major trade agreement (TPP) and urged corporate executives to keep jobs in the country.

Tuesday, Trump signed executive orders to revive the controversial Dakota Access and Keystone XL oil pipelines to produce new blue-collar jobs at home.

Also on Wednesday, Trump ordered the construction of the US-Mexico border wall to crack down on immigrants and bolster national security. Trump also called for hiring 5,000 additional border agents.

A combination of looser fiscal policy and tighter monetary policy under the Trump administration will likely see the dollar advancing against a basket of currencies in the months ahead.

In addition, the upcoming February FOMC statement and January NFP data will provide latest clues to the dollar outlook. US dollar is likely to rebound if the Fed maintains its forecasts of three rate hikes this year and if the U.S. economy adds more-than-expected jobs in January. We expect the dollar to rebound but would trade the dollar’s strength with vigilance amid swinging sentiment.

Trump fulfills some campaign promises – USDX Technical Outlook

Trump fulfilling some of the campaigns promises: Is dollar set to resume upward strength? USDX D CHART (Click to zoom)

The USD Index Technically still looks quite vulnerable. However, on a more weakness, the confluence of 200-Day moving average and a rising trend (97.20) line should possibly hold before a constructive or strong rally can take place.

Do you have other views in contrast to the ones listed or you want to compliment them further? let’s know by your comment below.

Don’t forget to share.

Share Your Opinion, Write a Comment