“Trump policy and Fed rate rise could see dollar par the Euro”

Jordan Hiscott, Chief Trader at ayondo Markets

The US Dollar’s strength continued this morning, moving to a ten-year high. Two factors are driving this bull market– namely the extreme likelihood of a Fed interest rate rise next month, with possible further hikes in 2017, along with the surprise election of Donald Trump.

Trump’s proposed polices bear similarities to the Ronald Regan era, specifically the increased infrastructure spending, deficit spending and tax cuts, the culmination of which will lead to a large rise in inflation. 

One of the biggest causalities of the stronger dollar has been the Euro. The currency has fallen from 1.1290, just after the US election, to 1.0518 today, and increasingly looks likely to be on parity with the US dollar by end of 2017.

Author: Dylan Jones

Share This Post On
WP to LinkedIn Auto Publish Powered By : XYZScripts.com