Dollar gets extra tik by Trump
- The US dollar weakens against all the commodities. Traders point to the failure of Donald Trump's plan to replace the 'Obamacare.'
'Trumpfaillure' pushed the dollar to a ten-month low against the euro. 'If even this important plan for Trump is not successful, it's not going well. The market sees this as an indicator that he can also get other things together, 'says macro economist Elwin de Groot of Rabobank.
'This failure certainly contributes to the further weakening of the dollar against other coins. '
In the meanwhile, the euro coin is responding to a basket with major trade coins in response this year by about 6%. Economists are in charge of countering the US and the United Kingdom.
That's bad for European exports, but good for American companies, according to currency trader Laurens Maartens of the Dutch Payment \u0026 amp; Exchange Company (NBWM). 'US export companies are currently balancing the park, as well, for example, they are in the S \u0026 P500. There is waiting for a wage increase, which remains. '
The British pound responded to the lower than expected inflation rate against the euro and the dollar. The FTSE in London pledged after the lower than expected inflation rate for the United Kingdom.
'The UK core inflation is also lower than expected. The undermining of purchasing power is less than expected, 'says macro economist Elwin de Groot of Rabobank.' Formerly, the Bank of England wanted to raise interest rates, indicating that the interest rate hike does not need to be quickly and the central bank is longer Offers support. '
Maartens: 'This has consequences in Europe that go beyond the foreign exchange market. If European exports deteriorate due to the Brexit effect, the move of the European Central Bank to raise interest rates may be curtailed to support exports from the euro area. '
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