Those, following the markets can see today that yesterday’s speech of Donald Trump did no favor for the greenback in the end. Yes, the anticipation that was building up ahead of it did drive the greenback higher, but that was it. As soon as the speech started and after it, we could see that in the end Trump was just a huge disappointment for the markets. And today, ahead of two important reports – CPI and Core CPI, which can be the measures of consumers’ buying strength as well as inflation rates we see that the greenback is giving up its positions.
The decline might not be as bad as we think, but it is still there. Trump is to blame here, as his statement about trade war and the fact that we are still pretty far from the signing of it caused immense damage to the dollar and to Asian segment of the market. USD, despite its status of safe haven is not really getting a lot of attention today. You can look and see – in present condition gold and yen are getting much more attention. This indicates that traders are draw away from any kind of risk today.
With USD failing, there is only one thing to do – trade couple where it is a secondary currency and never forget about trading signals.