President-elect Trump delivered his first press conference yesterday, in a way it proved to be colourful in his approach to a CNN reporter, but when it came to market direction – there was little given out in terms of tax cuts or spending strategies.
Lets not forget that the Dollar rallied and equities followed in tha aftermath of Trump’s surprise victory on the back of expected economic stimulus measures and fiscal spending that were thought to be forthcoming.
Trump’s comments on health care reflected negatively on sector stocks but overall major inidces managed to eke out some gains up till close yesterday. However a look at the major indices performances showed us that sentiment remained mixed as we moved into the Asian session this morning.
A lack of Trump’s strategy going forward, and the weaker Dollar saw the USDJPY slip to one month lows of 114.24 yesterday and this morning we are already seeing a re-test lower. The JPY is higher across the board this morning.
The Dollar index is also heading south, amrking fresh weekly lows as we speak. Currently we are trading at 101.26 pushing further away from the highs of 103.82 achieved on the first trading day of 2017.
EURUSD is currently at 1.0630 as the euro takes the cue from the weaker USD, and is challenging the 50 DMA at 1.0612 that had acted as a ceiling throughout much of the past week.