US: Political uncertainty goes into over-drive - AmpGFX

The News swirling around Trump and his administration in March has kept heads spinning trying to keep up, according to Greg Gibbs, Analyst at Amplifying Global FX Capital. 

Key Quotes

“This includes, among other issues: firings and resignations from his administration; a rise in influence of trade and foreign policy hawks; trade tariff announcements; firing of ex-FBI Director McCabe; pressure on the Muller investigation to be closed; Trump’s head lawyer resigning; a deepening and widening Mueller investigation; mixed messages on Russia; sex scandals; a big swing against a Trump-endorsed candidate in the Pennsylvania Special election.”

“There is little reason to expect a respite in the White House drama.  Ex-FBI Director Comey is set to release his tell-all book and give a TV interview in April.  Trump is trying to hire more lawyers.  There is talk of a Summit with the Russian leader, despite the suspicions of collusion, Facebook is likely to face more scrutiny over its role in Russian election meddling, Mueller is not going away and in fact, will loom larger.  The approaching mid-term elections are likely to heighten fears of erratic behaviour.  If Democrats take control of one or both houses, the focus on the Mueller investigation is likely to increase, raising the odds of impeachment proceedings.”

“Political uncertainty at times appears to have weakened the USD, although it has appeared to shake-off such developments in recent weeks.  We continue to see the approach of mid-term elections heightening risk potentially undermining the USD.”