Boris and Kathy Forex Weekly – 23-07-2018 – Crosses
July 22, 2018 10:21 pm
We continue to operate in an environment where politics matters as much to the direction of currencies as economics. In the past week, the U.S. dollar soared after Fed Chair Powell reassured investors that the economy is doing well and interest rates are on the rise. However President Trump halted the dollar’s rally when he took the remarkable step of commenting on Fed policy. For the first time in 2 decades, a President trespassed on the Fed’s independence by saying he’s “not thrilled” with the rate hikes. Although he added that he’s “letting them do what they feel is best,” the use of the word letting implies that he thinks he could affect Fed policy.
We continue to operate in an environment where politics matters as much to the direction of currencies as economics. In the past week, the U.S. dollar soared after Fed Chair Powell reassured investors that the economy is doing well and interest rates are on the rise. However President Trump halted the dollar’s rally when he took the remarkable step of commenting on Fed policy. For the first time in 2 decades, a President trespassed on the Fed’s independence by saying he’s “not thrilled” with the rate hikes. Although he added that he’s “letting them do what they feel is best,” the use of the word letting implies that he thinks he could affect Fed policy.
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