DTrcl559121

Dollar losing confidence

 
     The US dollar index lost positions again. Expected that the US dollar will be storm the level of 100 basis points in last week, now this mark seems to be something far away and unattainable in the short term.

     Besides statistics, which showed weak results, and lead to doubt the market participants that the Federal Reserve will raise the interest rates at the Federal Open Market Committee in June, the President of the United States of America adds fuel to the fire. The markets are again in panic due to the new scandals around Donald Trump.

     The US president continues attract attention to himself, only this attention is negatively impacted for him. Decreased confidence to Trump raises concerns about his ability to implement his ambitious reforms, which may not pass in Congress.

     In this regard, the Federal Reserve really can slow down the process of normalizing monetary policy. The lack of fiscal stimulus, the slowing of inflation, earlier for the Fed smaller was enough to abstain the raising of interest rates.

     Perhaps next week, when will be published the FOMC Meeting Minutes the US currency will receive support, but to fully restore of the dollar, needed statistics which will show the growth of the US economy.