How to Trade Trump This Week

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It’s been a busy week yet again with big moves on many of the major markets, and yet again a lot of these moves have been generated by the uncertainty created by President Trump and the latest news out of his administration. With the resignation of Michael Flynn to his scathing media attack yesterday it seems that Donald Trump has still not looked up the term Presidential since he took office.

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However much uncertainty and headlines that the new president grabs, what we can say is that the markets currently like whatever we can call it, with equity markets hitting fresh all-time high on pretty much a daily basis and the US dollar now making new monthly highs. The big question around this is, can it continue?

Busy Week

This week sees another fairly busy week in terms of macroeconomic data, but with most of the headline data coming out of the European markets, rather than heavy data coming out of the US. However of course as we have already discussed that won’t stop President Trump grabbing the headlines.

One thing we will be looking out for this coming week will be any hints as to the new administration’s fiscal policies. Janet Yellen last weekend hinted to the fact that although the monetary policy was on course, and that we should potentially expect more that the touted 3 rate hikes in 2017, that new fiscal policy could well cause market volatility and uncertainty, therefore could cause the Fed to be more cautious.

Gold Prices Higher

Gold prices have had another pivotal week with big swings yet again as the US dollar continued its Jekyll and Hyde performance. Donald Trump’s inability to stay out of the headlines is something that has helped the price as well, as gold yet again becomes a safe haven as investor worry about general uncertainty.

Gold has moved from the lows down on the 16th December at $1122 to highs up at $1244 over the first couple of months of the year. The move has coincided with huge amounts of uncertainty over the US dollar, but mainly on the fact that traders don’t know how to trade their way through President Trumps ranting and ramblings.

More Record Highs?

US equity markets have hit all-time highs yet again as the relentless march higher shows no signs of slowing down. The current risk environment is lending itself to those trading stocks, and the major indices, with recent earnings and political rhetoric all helping the push to the upside.

President Trump has yet again promised that he will cut red tape and reduce regulation in order to boost American business. We are however yet to hear any plans from the new President about his fiscal policies, something that has led to the indecision from the Fed, and swings in the US dollar.

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