USD keeps looking to Trump – UOB

Strategists at UOB Group noted the greenback remains under pressure amidst unabated uncertainty around Trump.

Key Quotes

“Since stepping into the White House on 20-Jan, President Trump has signed seven executive orders, many of which are realization of his campaign pledges and includes the building the Mexican wall (Day 6) and denying U.S entry to refugees (Day 8)”.

“The lack of attention and details into fiscal spending and tax cuts, both also his campaign pledges, has kept the USD on the defensive. As with Fri’s publication, we are cautiously optimistic that that USD could be transiting into a basing pattern from an earlier 3% decline since the start of 2017. In the past two sessions, we have seen some support for the USD near the 100-handle for DXY amid below-estimates of U.S 4Q-GDP (1.9% vs 2.2% est) and PCE deflator (1.6% vs 1.7 est)”.

“That said, into this dip, we recommend positioning for a midterm higher USD”.