Trump Disappointing Before Even Starting
Yesterday in the afternoon, we were sitting on more than 100 pip of profit in our EUR/USD signal. This morning, we're about 50 pips in red. The upside is limited, but it´s frustrating being well in profit and then have to wait for days to get back where we were again. Patience is the name of the game in forex.
Not in politics, though, especially when Donald Trump is involved. He disappointed the market yesterday because he didn´t mention any fiscal stimulus. Fiscal stimulus was supposed to replace the monetary easing from the FED. At least, that was what the market was expecting and it felt disappointing when Trump didn´t mention it.
It would help the US economy since it filters through to the bottom end faster than monetary policy. However, nothing about spending plans for the new administration was mentioned and the USD bears loved it. I mentioned in the last update yesterday that the EUR/USD signal looked good if Trump didn´t smoke the Buck.
Now, the USD is about 200 pips lower across the board and 280 pips lower against the Yen. Is this a game changer? I don´t think so; at best it will give us some better entry to open a buy USD/JPY signal because I have been eyeing this forex pair since it dived last night after closing our previous forex signal for more than 100 pip profit.
But my disappointment lied somewhere else yesterday. I thought now that Trump is going to be president, he will become more mature. Disappointingly, most of the interview yesterday was a row between him and the journalists.
So, guys, prepare for 4 years (or more) of fun, both in politics and in the forex market. We might have 200-300 pips turnaround rallies in USD pairs every day when Trump enters the White House.
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