Another day, another fall for the Dollar which due to the situation in the US (trump Russia Scandal, FBI sacking) is weighing on investor sentiment. Trump has been a long favorite of implementing tax costs which would have stimulated the economy, however the latest developments give rise to speculation that his tenure as president could be short-lived.
- The dollar, fell 0.13% against a basket of currencies, with weakness most evident against the EUR which reached 1.1158, its highest since the US Presidential election on November 8th 2016.
- The political turmoil and uncertainty has benefited gold which rose as high as $1244 from last week’s $1216 lows. Gold always benefits at times of investors lack of confidence in the stock markets. Yesterday was its 5th consecutive day of gains.
- Loss of confidence also benefits the Yen, which dropped to 112.70 from 113.83 on Friday.
- The Dow Jones tumbled 121 points to 20,813 and Japan’s Nikkei 225 slipped 0.62%, while the s&P/ASx 200 fell 0.81%. The S&P 500 closed flat while the Nasdaq Composite closed at 6169.87, up 0.33%.
- Going forward the market will continue to be stressed on Trump’s mishap. The economic calendar is not filled with important data, other than Crude oil inventories.