USD Discussion | Aussie Stock Forums

There has been an ongoing crisis in the U.S economy after the Mr. Trump become the U.S president beating Hilary Clinton On 8th November 2016. The green bucks gained an immense amount of strength in the global market after Mr. Trump stated that they are going to increase the fiscal spending and include tax cut policy to bring stability in the U.S economy. Such a great optimistic statement from the newly elected U.S president pushed the green bucks higher in the global market. Due to the extreme level of U.S positive consumer and U.S interest rate hike in the month of December, the U.S dollar index secured a 14-year record high in the global market. However, the market absorbed most of the bullish power of the green bucks in the CFD trading industry prior to the closing of the year 2016.

Uncertainty in U.S political conditions: There has been a massive decline in the U.S dollar index and it has secured a six-month low in the global market pushing all of its major rivals higher in the market. Things become further worse after Mr. Trump pressurized FBI director James Comey to put an end to the agency investigations. Such a drastic action from Mr. Trump intensified the sentiment of the consumer in a negative way and pushed the dollar lower in the global market. According to the leading economist, the U.S economy might face much extensive selling pressure in near future as Mr. Trump administration is totally unclear and unpredictable.

U.S pending rate hike: Though the dollar is subdued under extensive bearish pressure in the global market but the investors are still waiting cautiously for a strong turnaround in the green bucks with the rate hike decision by FED. If the FED manages to implement another rate hike in the month of June then we might see another bullish recovery in the U. S dollar index. However, the Aussie economy is doing pretty well in the global market and the AUDUSD pair has been skyrocketing by utilizing the negative sentiment of the U.S consumers. Compared to the previous year CFD trading has become much more difficult but some of the aggressive traders have made a decent profit by going in favor of the Australian economy.

Currency market overview: Most of the major currency pair in the global market is rallying higher against the green bucks for the last three months. Though the FED have hiked their interest rate one time this year but things went pretty negative for the green bucks as Mr. Trump failed to keep his promise regarding the increment of fiscal spending. The EURUSD pair gained near 0.84% in the global market and secured a high of 1.1196.The Great Britain pound gained near about 0.64% and traded at 1.3023 which is the largest gain for this year. On the contrary, there has been a massive decline for near about 0.55 percent in the USDCHF pair. The pair traded at 09744 prior to the market closing. Considering all the currency pairs in the CFD trading industry the Aussie economy is doing relatively well in the global market despite the ongoing political crisis and optimistic Aussie buyers made a decent profit in the global market.

Summary: Trading the financial instrument has become pretty much complex nowadays and most of the dollar bulls are pretty much worried about the prolonged negative performance in the U.S economy. Some of the leading currency analysts are suggesting that the dollar will weaken furthermore in near future unless FED comes up with a solid rate hike with a hawkish statement in the FOMC meeting minutes. The FED has projected three rate hike in the year 2017, out of which only one has been implementing. If the current performance of the U.S economy remains in such negative phase then we might see a strong delay in the next rate hike which will ultimately push the dollar lower in the global market.