The US dollar continued to perform poorly a day after Donald Trump‘s speech as Investors expect Fed speakers to give direction regarding future fiscal policies. There was widespread selling pressure on the greenback as investors demonstrated their loss of confidence in Trump given that he did not outline the specific policies that he will pursue.
The greenback lost more ground today against major currencies such as the Japanese yen, the euro, and the Canadian dollar. The greenback’s decline led to a surge in the Canadian dollar as oil prices rose, but the US dollar has since clawed back some of the ground it had lost against the loonie.
Trump’s Speech triggered a selling frenzy in the markets as investors tried to minimize their exposure to the greenback. Trump also heightened fears that his campaign promises might not translate into major changes in fiscal policies.
The Japanese yen also outperformed the US dollar as investors bought the currency, which is widely considered an anti-risk currency.
The period leading to Trump’s inauguration on January 20 is crucial for the US dollar as investors look to get direction regarding the fiscal policies that shall be implemented by Trump’s administration.
The EUR/USD was trading at 1.0644 as at 18:40 GMT having opened trading at 1.0592. The USD/JPY was trading at 114.29 having tested highs of 115.21. The USD/CAD was trading at 1.3124 having opened the day’s trading at 1.3162.
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