Dollar bulls are rubbing their hands to have a go once again on the premises’ of President Donald Trump promise of tax cuts, ‘good news’ from the courts, a better than expected data from China and Shinzo Abe visit to the White House, coupled with a hawkish Janet Yellen makes it more appetizing.
It looks like all is falling in place for a big rally for the USD/JPY today and in the coming weeks. There was a fresh gift of optimism for investors and traders when President Trump said he has something ‘phenomenal’ on taxes in the next two to three weeks as he interacted with Executives of Airlines.
It was this same form of optimism from the campaign trail that lead to a more than 5 percent rise of the dollar against it six major competitors’ after he was elected into office. At the time the dollar rose on 8/11/2016 to 11/12/2016 stretching more than a month of persistent rise until the President turned more of his attention on trade protectionism and his immigration stunt.
On Thursday, the Federal Appeal Court rejected to reinstate the executive order temporarily banning people from seven Muslim-majority countries from entering the United State. The unanimous rule stem from the administration failure to offer evidence of threat to national security. In its ruling, the court said government had so far failed to show that any person from the seven countries had perpetrated a terrorist attack in the United States.
Although, the administration has an open window to appeal or take the matter to the Supreme Court, for investors and traders, this ruling from the Appeals Courts gives a waiver of sanity and brings to an end the panic it provoked. Investors and traders are happy the strength of political noise is weighing down.
Today on the market, there is a full plate of data coming from the US which include; Michigan Consumer Expectation/Sentiment for February. There is also an eye on Shinzo Abe, the Japanese Prime Minister visit to the White house.
Any negative headlines coming from the meeting between the two will choke the rally of the dollar.
From a technical view, as at the time of filing this piece the USD/JPY was trading at 113.600 from a daily high of 113.851 perhaps, due to better than expected data from China during the Asian open.
The dollar index which measures the strength of the dollar against six major currencies pairs was firmer around 100.80 from a daily high of 100.87.
More stories @ http://peneyeview.blogspot.com/?m=1
Hey there nice to see you on steemit. I just upvoted you. Let's us see if President Donald Trump will make America great again by cutting down tax.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit