Politics is putting pressure on the USD. Overview for 14.03.2018

The main currency pair continues growing; investors are analyzing the news about President Trump’s dismissing Rex Tillerson from his position as the Secretary of State.

EURUSD is slowly growing on Wednesday. The current quote for the instrument is 1.2412.

Donald Trump keeps shocking the currency market with his surprising decisions. Earlier, investors had to deal with his initiative to introduce 25% import duty increase for steel and aluminum and take it into account when planning their long-term strategies. After that, they were forced to watch Gary Cohn resigning from his position as the chief economic advisor to the US President. Now, Trump announced that he had dismissed Rex Tillerson, who is rather “heavyweight” in policy circles, from the Secretary of State position. The reason is the same as in the case of Cohn, a difference of opinions.

Last week, Tillerson said that he was against the US policy relating to overseas relations in general and to Russia and North Korea in particular. So, it looks like Trump wastes no time and simply eliminates those, who are against his political strategy.

It is already known that Mike Pompeo, the former Director of the Central Intelligence Agency, will succeed Tillerson as the Secretary of State. Pompeo is quite a powerful politician and, unlike Tillerson, very loyal to Trump’s political beliefs.

The statistics on the US inflation also counted against the USD, although it wasn’t very negative. Matching the expectations, the CPI added 0.2% m/m in February after expanding by 0.5% m/m the month before. On YoY, the indicator increased up to 2.2% after being 2.1% in January. However, the latest reading doesn’t include the February numbers, which will be included in the March report.

RoboForex Analytical Department