Trump causes further turmoil – how will his recent statements affect the USD?

The USD is coming under increasing pressure, as the plot continues to thicken around President Donald Trump and his now infamous sacking of FBI chief James Comey.

The table below displays GBP/USD movement over the last month:

Currency Pair% ChangeDifference on £200,000
GBP/USD3.5%$9,040

The greenback has suffered losses against most of the major currencies of late and its poignant that despite the issues mentioned earlier in this report for the UK economy, the Pound has not lost value against the USD.

Pound to US Dollar exchange rates have moved back above 1.29, following more stories being leaked about how Donald Trump has seemingly backed himself when accused of leaking classified information to a Russian diplomat on their recent state visit.

This in itself will likely cause investors to panic but overnight another story has hit the headlines, which is possibly even more shocking.

President Trump apparently asked the now ex FBI chief Comey to drop the investigation into his ex-national security advisor Michael Flynn, with the media stating he used the words ‘I hope you can let it go’ after a White House meeting in February.

Whilst the White House deny the allegations, it is yet another potentially crippling story for the Trump camp and unlikely to assist the USD in making any major inroads over the coming days.

Who knows what this man will say next but investors are losing confidence in his ability to drive the US economy forward and this is being reflected in the value of the greenback.

With little economic data of note for the US over the next few days expect the Trump saga to dominate headlines. We could see the USD fall further as the story develops and investors decide to pull their funds away from the USD and avoid Trump causing any more downturn for the currency.

Thank you for reading my US Dollar currency report, if you have any questions about USD exchange rates I would be more than happy to discuss them – you can contact me with any queries at mtv@currencies.co.uk.

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.

News

Read more articles
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.