Dollar Bolstered On Trade War And Other Concerns

Published on: 08/22/18 10:03 AM

Category: Uncategorised

The dollar saw new highs as more concerns about the implications of a full-scale trade war continue to loom large throughout the United States. New policies implemented by the Trump Administration went to directly target the country of Turkey and its currency. Those policy decisions have had almost immediate impact and have caused the Turkish currency to fall dramatically in relation to most other world currencies including the dollar.

A lot of traders are excited by the week that is to come as they see it as a possible time for more volatility and plenty of trading opportunities. Retail sales and consumer confidence data are expected to be reported on Wall Street, and that could have an immediate impact on the value of these currencies. There will also be another Fed interest rate decision during this time. Most expect those rates to remain stable, but a wild card from the Fed could play a role in how the dollar fares against other currencies.

There is going to be the annual Economic Symposium in Jackson Hole, Wyoming later in the month, and that is always a big mover of markets depending on what the wealthy and powerful have to say coming out of those meetings. It is expected to be very interesting this year as a series of increasingly positive news stories relating to the stock market have a lot of investors quite pleased with how the market has been doing lately. More news out of this symposium could give the public some idea about where markets may be headed going forward.

Some international conflicts and tensions remain strong between the United States and countries like Iran, Turkey, and even Russia. However, it is very difficult to predict what may happen with these situations going forward. The President has such mixed relationships with the countries mentioned above, and it is impossible to say what the direction of those relationships may look like in the near or long term.

Finally, a sense of the political landscape in the United States as midterm elections continue to approach is important as well. Right now the general picture is that Democrats are going to do fairly well at least in their races for House seats. Most political experts are currently predicting that the Democrats may reclaim the majority in the House of Representatives while falling just short in the Senate. However, it is not entirely impossible that they may when majority control of both chambers. No matter what actually happens, the perception game going into those elections could be critical to market performance for the dollar and other currencies that are traded against it. A surprise election result one way or the other could be a big deal as well.