The US dollar is still performing well despite a series of negative news stories over the weekend, including that of Donald Trump being party to the US Government shutdown.

Currency Pair% Change in 1 monthDifference on £200,000
GBPUSD2.89%$7,101

By failing to agree terms on budget proposals, significantly the amounts to cover the cost of the ‘Wall’, thousands of government workers could find it is a rather bleak Christmas.

Trump is also in the news because of a range of policy decisions affecting military withdrawal from Syrian and Iraq.

 

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Donald Trump has been a key factor affecting the strength of the US dollar since his election in 2016, as the market tries to predict what he will do next.

2019 is likely to be a very turbulent time on the US dollar since this year has seen 4 interest rate hikes from the Fed and next year might see a further 2. There is then a real chance the market has to backtrack on its viewpoint of the US dollar, which could see it weaken.

The next 4 working days will see a series of limited economic news released, plus the fallout from the US Government shutdown. I would also not expect Donald Trump to be quiet over the Festive Season, his twitter page might well provide market with some cause for concern as we finish 2018.

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