US dollar is under pressure at forex market
It is the first full week after the inauguration of new US President and the US dollar had an interesting trading week at the forex market. We had the speculation about the promised plans to build the wall between USA and Mexico.We watched the uncertainty about promised financial, economic and mainly Business plans on tax cuts, infrastructure spending, and tax tariffs such as a 20% tax tariff on imported Mexican products to the USA.
Waiting for a new trend for US dollar
But we noticed during this full week a weak US dollar versus major currency pairs, such as the Euro and UK Pound.The UK Pound had a great rally, appreciated a lot versus US dollar mainly based on political rather than fundamental news.
The delay of Brexit could be attributed to legal purposes and is certainly an important financial event.Today we have two major fundamental announcements for the US dollar.
- USD Gross Domestic Product (Annualized) (4Q A)
- USD Durable Goods Orders (DEC P)
If the actual outcome is better than forecasts, then we could see a stronger US dollar.Patience and good risk management is needed until 8:30 AM EST time, when we will find out the actual numbers.In the meantime, we can focus on both uncertainty and volatility as ways to make better financial and investing decisions.Other very important factors which will affect the price of US dollar are the oil and gold prices. Crude oil prices are in a consolidation range around $54 per barrel, while gold is around $1187 per ounce trading today.Also, an important factor is the meeting of UK prime minister with US president today.Any information or announcement on this hot political and financial, business issue can create further volatility in the financial and capital markets, not only for the US dollar but for the stockmarket as well.It is an interesting day with very important fundamental announcements and these announcements could certainly create investing and trading opportunities. As always caution is necessary.
