Treading carefully: The effect of the US Treasury’s slip on the dollar

Ever since Donald Trump has been elected, things have nothing been short of a roller coaster ride. His bold proclamations and controversial political moves have everyone flustered in the United States. As a matter of fact, it’s just not America, but the entire world is on edge. Uncertainty is certainly looming. Looking at the Forex trading data in November of last year, there were consecutive days wherein the US dollar continually trickled down. This could only be attributed to the inauguration of Trump. Since then, the dollar was able to recover. However, very recently, the currency started to experience a downturn once more, mainly propelled by the president’s comment on the currency that otherwise was “getting too strong.”


Image source: qasioun.net

Immediately after Janet Yellen, the Federal Reserve Chair, released a remark suggesting that the federal government is ready to increase interest rates at a faster pace, doubt was planted in the minds of investors leading to careful trading. This was also fueled by the US retail sales data and consumer sentiments. There was also word of the United States Treasury yielding less than ideal numbers. The frosted icing on the economical cake is the increasing tension with North Korea and Syria. Analysts are even hinting at an all-out strife with the two nations.


In Asian trading, it seemed things were going well for the dollar as they were able to bag good numbers. However things immediately turned south, going down by as much as 0.15 percent. The dollar index fell by 0.31 to 101. 03. Consumer data and future decisions will surely stimulate further movement.


Image source: philosophyofmetrics.com

With the French elections coming (read: Frexit) and UK Prime Minister Theresa May announcing a surprise snap elections, the US dollar is set to undergo another roller coaster ride (although probably not as chaotic as the Euro, Sterling, or Franc). Various other political events and socio-economic trends will keep the USD in a tumultuous adventure.


The LOM Financial (Bahamas) Limited is composed of a team of market experts who are able to offer a full array of private banking services through LOM’s wealth management platform. To know more about its services, click HERE.

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