The Trump Effect & The Week Ahead

It’s finally over and the US has a new Sheriff and he certainly hit town amidst a whirlwind of enthusiasm, both good and bad. Donald Trump has arrived and the market is no more certain about the coming fiscal policy and it’s effects than they have ever been.

He is kicking up a storm as he unravels Obama’s legacy and implements his vision. We can only wait and see what it brings and how it unfolds – either way I can promise you it won’t be dull and boring.

Simply put the markets are very vulnerable and equally nervous – even the slightest bit of news can result in a knee-jerk reaction with huge swings. The next few days are going to be a wait and see situation with traders anxiously waiting for confirmation of what Trump promised will start to unfold.

US Dollar on a Knife Edge:

The lead up to the Presidential inauguration was met with a surging Dollar as market optimism expanded. Now any signs of vulnerability looks to unwind much of that gain and the US dollar bulls are starting to hedge their gains and some sell off momentum has started across the board.

Gold and Equities Guardedly Optimistic

It appears equities and gold are moving in tandem with the USD and guarded optimism as to the stock market resurgence continuing. As of this writing it appears traders are lightening up and playing it safe. A few days more like this and market nervousness will kick in and we could be set for a fairly large correction of the 2017 move .The US GDP with help determine the direction of Gold coupled with the current market sentiment. Most analysts are left scratching their heads as they try make head or tail of it all.

As always the ForexSignal trading team will be watching and preparing for any and all potential trade opportunities and ready to alert our subscribers as always.