Any Reason to Sell the Buck Is Good Enough Nowadays
Skerdian Meta • 1 min read
The USD is under some heavy pressure and nothing seems to cheer up the USD bulls. When Donald Trump was elected president, everyone's focus was on the fiscal stimulus plan. That´s why the Buck rallied in the last 2 months of 2017.
When Trump actually became president, he shifted the markets attention from the fiscal plan to what everyone was thinking before the elections. Before the elections, the consensus in the market was that Trump was going to be a mess and mess up the economy, too.
Well, it´s only been one week and he´s already convinced the markets that it will be messy. So, the market is dumping the Buck on every chance it gets.
Last nights Australian building approvals and trade balance gave us a good example. I have never seen the AUD pairs move on this data, but last night AUD/USD jumped nearly 100 pips on a miss, actually.
Building approvals were a tad above the expectations, but at -1.2%, it was still a negative number. Yet, the Aussie jumped higher and it pulled the Kiwi higher with it.
I thought it must have been some good news coming from China, knowing the close relation between these two commodity dollars and the Chinese economy. But no, it was just a mediocre number sending two major currencies higher.
It shows, though, that the market is not in love with the Buck anymore. So, we must be careful to pick entries for our forex signals and forex trades.