Currencies Consolidate As Market is Confused

The currencies and markets have been consolidating over the past 24 hours as they are yet to make up their mind over Trump and his team. The new administration in the US has gone about its business and begun to fulfil some of their campaign promises. One of those promises related to tighter immigration laws as the US starts looking inwards and this seems to be the latest in the round of criticism of Trump and his team. His order to tighten immigration rules with relation to people from specific Muslim countries has not been taken kindly by the rest of the world.

The world leaders have made their displeasure known and they seem to be as confused as anyone on how to deal with this new team that is at the helm in the US.There are also talks and rumors on changes that are likely to be made to trade agreements between the US and others and this has increased the confusion and fears surrounding the dollar. The currency markets have tended to take this out on the dollar and that is the reason why the dollar has been suffering for the past couple of weeks though the Fed is about to hike rates in the coming months.

Looking ahead to today, we do not have any major news except for a speech from the ECB President Draghi and also the CB consumer confidence data from the US. This is the last day of the month and so expect some month end flows and also expect some changes in trade positioning in anticipation of the new month. It is important not to get caught in all the volatility and to trade with tight stop losses and ensure that you do not get caught out holding the bag at the last.

 
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