After the President of United States; Donald Trump, took office, along with the consequences, expectations and uncertainties arising from the decisions he had previously announced, coupled with the implementation of such actions in economy, have ended up generating nothing but dramatic declines in the near future to the US dollar. The American currency will show a marked weakness against major Forex crosses.
Forex is the abbreviation for ‘Foreign Exchange’, and it’s the market where, basically the major currencies of the world are bought, sold and offered. The US dollar has always been known for leading ranges of value in the market, however, after the new president’s actions, the dollar has fallen from the privileged place it stood all these years.
The statements of the President of the reserve Federal United States (FED), Janet Yellen, regarding changes in the monetary policies of the Agency didn’t help investors in their decisions, thus contributing for the dollar to show weakness.
Yellen said that it is prudent for the Federal Reserve to ‘gradually’ set policies through time, this was done after Chinese shares increased their profits. The Asian giant is the second largest economy of the world.
USD-JPY, was marked by a loss of 0,10 percent, which led to the closure of the Asian session to a favorable level of 114,70 yen in the Forex market.
On the other hand, the Shanghai index reached its maximum levels, which added to the news that the Chinese gross domestic product (GDP) increased, after two years, in the last quarter of 2016. The GDP got to 6,8 percent, it surpassed all hopes that said the profits would be only up to 6,7 percent growth.
In the case of the Asian index Topix, it recorded a continued boost by the third day in a row and in the case of the Nikkei 227, it went up by 0,34 percent, which led it to a total of 19,137 points. Also, actions of Sumco Corporation increased up to a profit of 5,39 percent.
Generally speaking, Donald Trump conservationist measures that have as main approach achieve profits to the United States, until now, have only meant losses and setbacks, both for the American currency and the stock exchange market.
This is due to the fact that previous economic campaign speeches of the President put ‘on notice’ investors and specialists of the world, who are taking measures and forecasts before a possible disregard of the American market as an ally or at least as the recipient of products.
Gold and Treasury shares have been on the rise for the fourth consecutive time, once investors are in search of “sure bets” to protect their profits from the falls of stocks and currency of the United States.