US Dollar Threatened by Uncertainty Associated with US Politics

The US dollar was vulnerable on Thursday as tumultuous US politics overshadowed positive macroeconomic data released in the United States over the trading session.

Economic reports released on Thursday were rather good. In particular, core PCE inflation, the indicator closely watched by the Federal Reserve, was stable at 1.4% in October on an annual basis. That led to speculations that the Fed will be more hawkish with its monetary policy going forward.

But the positive data lost competition with US politics for investors’ attention. The Senate should vote on the Republican’s tax plan, and it is expected to be a messy affair. Additionally, the New York Times reported that US President Donald Trump plans to replace Secretary of State Rex Tillerson with Mike Pompeo, the CIA director.

EUR/USD rallied from 1.1846 to 1.1897 as of 23:57 GMT today. GBP/USD jumped from 1.3409 to 1.3529. At the same time, USD/JPY climbed from 111.91 to 112.55.

If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *