News & Analysis
News & Analysis

Post Inauguration – approaching 100 days

19 April 2017 By GO Markets

Share

Post Inauguration – approaching 100 days

Back in November 2016, the people of America went to cast their vote for their 45th President. There were two main candidates – Donald Trump and Hilary Clinton, the polls indicated a win for Clinton but the result proved the opposite. Even though Clinton won the Popular vote, Trump won the vote that counted – the Electoral vote which made him become the President of the United States of America. Before the election took place, the large majority of experts predicted an adverse effect on financial markets if Trump wins. We are now close to 100 days into the Trump presidency and the impact on financial markets has been quite different to what most expected.

» Forex – USDJPY
Since Donald Trump’s inauguration on 20th January 2017, we have seen mixed movements in the US dollar against the other currencies. Since the expected US Federal Reserve 25bp interest rates hike on 15th March this year, we have mostly seen a declining US dollar against the Japanese Yen.  There is no doubt a lower USD is what Trump has been advocating for and USDJPY fell to its lowest level since October 2016 last week.

USDJPY

usd jpy daily forex charting

Click to enlarge
Source: GO Markets MT4

» Indices
US Indices have been on a steady rise since the election of President Trump, as you can see in the charts below (vertical red line for the inauguration date – 20/01/2017). It is now nearly 100 days since President Tump has been in the office and it is hard to foresee which way the financial markets will move but President Trumps decisions and policies may well have an impact on it.

One of Trump’s biggest and highly anticipated plan is his $1 trillion spending on infrastructure projects. The program would include a strategic, targeted program of investment valued at $1 trillion over 10 years. The proposal will cover more than transportation infrastructure, it will include energy, water and potentially broadband and as well as veteran hospitals which will create millions of jobs and boost improve the American infrastructure. Trump has said he will ask lawmakers to approve this legislation which will cost the huge amount of money and it will be funded by a mix of direct federal investment and private financing. Is Trump going to get this legislation approved? Only time will tell but it is certainly the one to watch out for in the coming months.

WS30

ws30 trading daily charting

Click to enlarge
Source: GO Markets MT4

On 25th January 2016, Dow Jones reached the landmark 20,000 barrier for the first time ever as Trumps pro-growth policies boosted the financial markets. The so called ‘Trump Rally’ was re-ignited by Trump signing a series of executive orders since his inauguration when he took office at the end of January.
It only took two months (42 sessions) for the Index to climb from the first close above 19,000 to 20,000.  It is worth pointing out that the rise between 18,000 and 19,000 took over 480 trading sessions.

The information provided is of general nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information provided, you should consider whether the information is suitable for you and your personal circumstances and if necessary, seek appropriate professional advice. All opinions, conclusions, forecasts or recommendations are reasonably held at the time of compilation but are subject to change without notice. Past performance is not an indication of future performance. Go Markets Pty Ltd, ABN 85 081 864 039, AFSL 254963 is a CFD issuer, and trading carries significant risks and is not suitable for everyone. You do not own or have any interest in the rights to the underlying assets. You should consider the appropriateness by reviewing our TMD, FSG, PDS and other CFD legal documents to ensure you understand the risks before you invest in CFDs. These documents are available here.

#Economy #Economics #Finance #Markets