Trump first press-conference after his election November was a sheer disappointment for investors. He was talking about various issues but ignored main topics that worried investors – fiscal stimulus plan and taxes. As all previous Dollar and stock rally has been fueled by his rampant campaign promises further clues on US economic expansion by extensive spending should have been key driver for growth. But lack of confirmation triggered the rout on markets with US Dollar index dropping from 103+ levels to 100.70 on Thursday:
Newly-elected president statements also hit pharmaceutical companies as high prices on certain drugs became the object of critics of the President. As the government is one of the biggest buyers on some drugs Trump said price restrictions should be imposed to free up billions of budget money. Drugmakers shares fell.
Regarding further forecast we can certainly say investors will become wary, reducing their bullish play based solely on universal euphoria and recent rally will turn to correction. US Dollar is expected to come off from peaks and test 100 level while most defensive assets is likely to raise in value. Here are some sweet trading calls we prepared for you:
US Dollar – short, DXY target is 100 level, SL – 101.60
Gold – Target $1,250, SL – 1,150
USDJPY – Target 113.2, SL – 115.50
Leave your questions and comments in the comment box below.
See ya next time!