Daily FX Update – 13th April 2017

As monetary and macroeconomic policies calm, geopolitical issues dominate and leave navigation of the market somewhat difficult.

Safe haven demands saw Yen and Gold accelerate gains at the beginning of the week which in turn saw the Dollar give up some recent gains. Yesterday saw the Dollar holding on throughout the session until Donald Trump decided to put a spanner in the works for Dollar longs by stating that the US Dollar was too strong. Unsurprisingly, the Dollar plummeted. 

This move is ironic considering his condemnation of currency manipulators, which is further ironic as he said he would not label China a currency manipulator in a forthcoming report. He can’t now really can he?! He actually did a huge u turn against 4 of his pre election promises by taking a u turn on currency manipulation,NATO stating it as no longer obsolete, Yellen by now backing her and interest rate policies by stating that he now favours a low rate policy, so further questions surrounding both his integrity and ability will surface. The Buck has become a lot tougher to call.. We did say the Trump presidency will ensure volatility and this new age of populism highlights more than ever the need to hedge.

Attention today appropriately turns to the US with PPI and initial jobless claims numbers. The week ends for most of Europe today accounting for Easter so position squaring may also impact an already volatile market.

Have a great Easter weekend.

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