This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
The past week had probably been a sampler for what is to come as we saw the US dollar being bumped down at the start of the week from Trump’s comments, citing that the USD has been too strong. Prices later recovered with Fed Chair Janet Yellen bringing the attention back to US economic performances. This could be the struggle that we see going forward. The US dollar nevertheless retained mild declines week-to-date (WTD).
On the other hand, the jawboning down of the US dollar by the President-elect certainly raised the market’s attention to the volatility that we may experience moving forward. With the imminent Presidential inauguration, indices were seen pulling back in the week. On the other hand, safe havens including JPY and gold have registered gains. The upcoming week holds several tier one data, but expect comments from the newly minted US President to steal the attention instead.