Trump's latest change to his cabinet has concerned financial markets as Trump's true motives for the changes isn't yet clear. This USD report looks into how Trump's ongoing changes could affect the Dollar in the coming months; the below table shows the difference in Dollars you could have achieved when buying £200,000.00 during the high and low points of yesterday.

Currency Pair% ChangeDifference on £200,000
GBPUSD0.65%$1816.91

US Dollar weakens as Trump replaces his Secretary of State

With all due respect to North American politics, it’s becoming difficult to keep up with the changes within the White House since Trump was inaugurated.

After some surprising changes recently in the form of Sean Spicer (White House Secretary), Hope Hicks (his longest serving aide), Gary Cohn (White House Chief Economic Advisor) and perhaps most surprisingly, Steve Bannon (Chief Strategist) to name just a few. Trump has now made another amendment within his cabinet by replacing his Secretary of State, Rex Tillerson with Mike Pompeo.

More movement within Trump's team

The reason that this is significant is because politics plays a large role is the financial markets as we’ve seen since the Brexit vote. The greenback fell immediately yesterday once the news broke, with the US Dollar index dropping straight away demonstrating that the falls were across the board.

Financial markets have aired their concerns regarding Tillerson’s departure, and now fear that Trump will implement more protectionist policies. His recent moves to introduce tariffs on metals imported into the US prove that he’s prepared to carry out these kinds of policies so you can understand financial markets fears.

Tillerson was considered a voice of reason to many, and his concerns regarding the recent tariffs are considered justified by many. Especially when we consider how tariffs have previously resulted in a weaker Dollar under previous George W. Bush and Bill Clinton Presidencies.

Late last night Tillerson said good work had been done resulting in better relations with China and less concerns surrounding North Korea’s nuclear weapons programme. He also warned of Russia’s ‘troubling behaviours and actions’ which is a timely comment considering the events in the UK that occurred 10 days ago now.

Retail Sales and US Jobs data to take centre stage this week

Despite fears from financial markets we must also respect the success Trump has achieved up to now, with the health of the US jobs market one of his stand-out achievements. On Thursday we will get our next update on the health of the US jobs market when both Continuing and Initial Jobless claims will be released at 12.30pm. Joblessness is expected to increase slightly, so there could be a drop in the USD later in the week especially if the data overly disappoints.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.