Donald trump has suffered a major setback after he was defeated in his attempt to replace Obamacare with his new healthcare bill. The planned legislation to overhaul the current healthcare system had been due to be voted on in the House of Representatives which is currently controlled by the Republicans. However, embarrassingly for President Trump this was withdrawn at the last minute by party leaders because of the lack of support from Mr Trumps own party. The bill was almost certain to have lost had the vote gone ahead.
During the Presidential campaign Mr Trump made replacing Obamacare one of his big priorities, and the latest set back in my view, could well be the start of the Trump bandwagon starting to stall. With GBP/USD rates sat around 1.2465 at the time of writing, we could start to see rates move back up to 1.26-1.28 in the coming weeks.
World stock markets have come under increasing pressure amid fears that they are at their most overvalued in almost 20 years. The FTSE 100 fell by just under a 100 points last week and markets in Europe also saw a slow down.
The losses were prompted by investors dumping risky assets and shifting over to safe havens such as gold and bonds.
With the rise in interest rates this month to 1% many had been expecting the Trump gravy train to carry on picking up momentum, however after Janet Yellen last week played down the prospect of three more rate hikes in 2017, and with both stocks and the USD being considered as over-valued we could begin to see a weakening of the US Dollar.
If you have a USD requirement it is very important to get in contact with one of our traders here to make sure you do not lose out on any potential market spikes which may occur in the coming weeks. With Donald trump loosing this key vote I am expecting sentiment around the US Dollar to turn negative over the coming weeks. Please call us on 01494 725 353 to get in touch.