For more superb educational content please visit our website!blogger.comy/ Americans have declared no-confidence vote to the political mainstream of the country, and elected Donald Trump – a character highly controversial and unpredictable as – as their new leader. His policies may lead to radical changes in the international economy and trigger tectonic shifts in the geopolitical landscape. Forex brokers and financial technology providers alike will not stay in /01/12 · The FOREX market also had put up with extreme volatility. On Trump’s election day, the American Dollar reached a low point at , before rising and ending at the highest level of that day’s session, at The Mexican peso, a proxy for US election sentiment, plunged more than 12%, reaching a record low near
How To Use The Trump Effect To Increase Your FOREX Performance
We then shifted our attention to the US election and its impact during the 2nd semester of On Election Day, the surprise victory of Trump had an intense and abrupt effect on worldwide indices. After the results, stock markets fell sharply, but recovered and finished in the green. It was the same as with the BREXIT vote: market participants had bet until the last moment on the option that seemed the most favourable: a victory for Hilary Clinton. But as Donald trump high forex noted before the results came out, the day after the US election is always extremely volatile.
The FOREX market also had put up with extreme volatility. The Japanese Yen, a safe-haven currency, strengthened to Trump will assume his role as chief executive of the United States next week on Friday the 20th of January. He is still seen as having very extreme views, so his election was associated with great uncertainty.
Uncertainty is one of the things we fear the most as traders. The instability that uncertainty can generate on the markets leads to higher volatility. This can be dangerous without proper money-management rules. But since his election, Donald Trump seemed to have moderated his tone and controlled his behaviour, which market participants have had appreciated since then, donald trump high forex.
Donald Trump plans to decrease taxation of high and middle-income earners For individuals, inheritance, gift and federal estate tax should be abolished.
He is also planning to abolish tax loopholes and create a tax on corporate profits that will be earned abroad. Trump also wants to encourage companies to repatriate wealth held abroad. This could generate a major boost for donald trump high forex American economy. Indeed, American multinationals, donald trump high forex, which have their headquarters in countries more fiscally advantageous, will be tempted to go home.
The significant tax rate cuts would also boost incentives to work, as well as to save and to invest. This latter will depend on the evolution of interest rates though. Trump is planning a massive program for investing in infrastructure rebuilding roads, donald trump high forex, bridges, schools, tunnels, airports and hospitals.
How or whether the tax cuts will be paid for is unclear. Conversely, the economy could expand significantly as a result of his other proposals, thus making the debt ratio much lower than current projections. Trump wants big changes in trade policy donald trump high forex he is clearly opposed to free trade. He wants to implement a more protectionist policy, especially with new tariffs donald trump high forex Chinese and Mexican products.
You can see his policies on immigration, taxes cuts, government spending, and international trade donald trump high forex you will find them on the website of his campaign. Or, and this is probably the most likely scenario, Trump will have to negotiate in some way with Congress. But in any case, there are some things we can conclude from his policies. If Trump sets donald trump high forex his protectionist economic program, this could lead to higher inflation. This in turn lifts overall U.
Consumer Price Index, or CPI, is one index that measures inflation, donald trump high forex, which is a sustained increase in the general level of prices for goods and services in a given economy.
There are different causes of inflation with 2 principal theories: demand-pull and cost-push inflation. The demand-pull theory assumes that if the demand for a good is higher than the supply, then prices tend to go up. The cost-push inflation theory occurs when companies increase prices if they have to bear higher production costs. Printing money is also considered to be a cause donald trump high forex inflation.
If the money supply increases faster than the real economic output, then inflation will likely occur, donald trump high forex, as everything will then be more expensive. But we might rapidly see negative impacts rising, especially from higher interest rates caused by the important deficits and higher inflation.
All of this bring us to the moneymaking opportunities on the FOREX market. So, as investors are expecting the FED to increase rates, they will look to invest in the US dollar. Higher interest rates will attract donald trump high forex investors, which will result in an increased demand for the currency of the country and therefore a strengthening of the currency against other currencies.
Another way of seeing it: higher interest rates will increase borrowing costs, money availability on markets will diminish, and the value of a currency should then increase. It is likely, however, that the evolution of the US dollar will be volatile and reactionary in the short-term. Any opportunity or challenge to the American economy will affect the American currency. For some, currencies of emerging economies might be an investment to stay away from because of global uncertainties.
But for others, it could be a real opportunity if you understand the dynamics of individual countries within the global landscape, as those currencies have suffered throughout The Russian Ruble might benefit from increasing oil prices and improvements in its relationship with the US.
The new US trade policies will negatively impact the Mexican peso, as Trump wants a more protectionist trade policy. He also wants to build a wall between the US and Mexico to avoid immigrants illegally entering American territory. Trump said that he would make sure that Mexico pays for the wall. This will probably continue to put pressure on the Mexican peso, donald trump high forex, which reached a record low of 22 on Wednesday.
Over in Europe, the sterling has had a difficult start towhich reached its lowest level since October. Investors will closely watch all BREXIT developments, as Theresa May said she would trigger Article 50 during the 1 st semester of Hard Brexit negotiations will weigh on the pound, as Theresa May wants to give priority to immigration control over the advantages of the single market.
The U, donald trump high forex. and Europe have the largest bilateral trade and investment partnership in the world. Any changes that occur in American policies will have a deep impact on their respective economies, and thus, on their currencies.
But as Trump is against expanding trade deals in order to limit competition against American industries, this will likely impact commerce between the two regions. On top of this, the European currency will have to deal with many political uncertainties this year. The French presidential elections, the legislative elections in Germany, the new Italian government, the Hungarian presidential election, and United Kingdom local elections can all have an impact on the EUR, especially with nationalism sentiment rising.
Trump has said that he will pass some important bills within the first days of his presidency. Any changes in his policies will have an impact on the FOREX market. On donald trump high forex other side of the Atlantic, you should closely monitor the BREXIT timetable and discussions around BREXIT negotiations.
Be also mindful of all the elections in Europe. Your email address will not be published. How To Use The Trump Effect To Increase Your FOREX Performance Muhammad Awais January 12, No comments. His economical program Taxation Donald Trump plans to decrease taxation of high and middle-income earners Massive Investment in Infrastructure Trump is planning a massive program for investing in infrastructure rebuilding roads, bridges, schools, tunnels, airports and hospitals.
Budget How or whether the tax cuts will be paid for is unclear. Trade Trump wants big changes in trade policy and he is clearly opposed to free trade. Understanding inflation Consumer Price Index, or CPI, is one index that measures inflation, which is a sustained increase in the general level of prices for goods and services in a given economy.
Happy Trading! What are you waiting for? START LEARNING FOREX TODAY! Sign me up! Tags: Article 50 BREXIT EUR FOREX FOREX Performance FOREX Strategy GBP MXN RUB Trump USD share This:. Leave a Reply Cancel reply Your email address will not be published.
as seen on:, donald trump high forex. Almost there! Learn the Top-5 Forex Trading Techniques. Enter your email below:. Learn the 3 Forex Strategy Cornerstones. Enter your email address below:. Get your Super Smoother Indicator!
President Trump statement on Stock Market
, time: 1:20donald trump | Forex Academy
/01/12 · The FOREX market also had put up with extreme volatility. On Trump’s election day, the American Dollar reached a low point at , before rising and ending at the highest level of that day’s session, at The Mexican peso, a proxy for US election sentiment, plunged more than 12%, reaching a record low near Americans have declared no-confidence vote to the political mainstream of the country, and elected Donald Trump – a character highly controversial and unpredictable as – as their new leader. His policies may lead to radical changes in the international economy and trigger tectonic shifts in the geopolitical landscape. Forex brokers and financial technology providers alike will not stay in /01/11 · Before we go on to why Donald Trump is so popular among Forex Traders, it is necessary to understand what drives foreign exchange trades. Simply put, Forex trading is based on the trade of one currency against another. When the price of one falls or rises, there is ample opportunity to make profits from investing in the currency that is blogger.comted Reading Time: 4 mins
No comments:
Post a Comment