Home / Forex & Currency Exchange News / World watches as Trump take over the Whitehouse

World watches as Trump take over the Whitehouse

Article by ForexTime

Everyone around the world is watching what was unthinkable this time last year, actually become a reality today.

So far, the reaction on the markets has been fairly muted and you would have thought investors are in wait-and see mode, and waiting for clarity on how the new President will be able to implement his campaign promises before deciding on their next strategic positions. There is no disputing that Trump’s fiscal stimulus plans should have a positive impact on the US economy and this is why major equity markets are still at elevated levels, but the question is whether Trump can actually pass these plans through Congress? If not, then this is a severe risk to profit-taking with the markets completely overbought if these policies do not become a reality.

If it is going to take some time for Trump to unveil how he will be able to implement his campaign promises there is also a risk to investors taking profit, especially when you consider how impatient investors can become when it comes to buying on announcements without tangible evidence of something taking place.

When it comes to Trump’s opening statement as the new President of the United States, the comment “we will always put America first” presents a risk by possibly causing some further pressure on the emerging market currencies because these export denominated economies are seen as being vulnerable to losing jobs when it comes to protectionist trade policies. Therefore I will be keeping an eye towards how the Asian markets opens on Monday morning, specifically currencies like the Malaysian Ringgit and Chinese Yuan that have been particularly volatile and sensitive since the US election outcome.


Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Click Here For Original Source Of The Article

About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

Check Also

Chinese Yuan shows resilience, despite emerging markets pressured by trade concerns

Article by ForexTime Conflicting indications over the status of trade talks between the United States and China has contributed towards a subdued opening of the week for financial markets. Reports that President Donald Trump will most likely impose tariffs on $200 billion worth of Chinese goods have collided with other reports that Beijing was considering […]

Leave a Reply

Your email address will not be published. Required fields are marked *