Political risks in the US do not give rest to the American currency

After Friday’s decline of the dollar due to the scandalous statement of ex-adviser M. Flynn about the intention to testify the connection between US President Trump and Russia and to the refutation of this connection and giving false testimony to Flynn, the US currency continues to restrainedly trading within the highs of Friday. Despite the fact that the aggravation of the political crisis in the US was avoided thanks to a refutation, and the dynamics of the dollar was supported on the promotion of tax reform, the overall political situation in the US remains very tense and far from normal.

Part of the political tension in the United States has come to the fore because of the data on tax reform and the upcoming rate hike in the US, which is expected this month. And the market partially played back a resumption of political scandal on Friday. Preservation of the downward dynamics of the dollar index, most likely, continues to be connected with political risks and the forthcoming uncertainty in the US.

The dollar index, as at the beginning of the day, continues to be limited by downward trend, which can be traced from November. But, at the same time, the growth of optimism based on the promotion of the tax reform in the US and the growth of the profitability of the US state bonds limit the decline of the American.

Graph of the US dollar index. The current price is 93,000.

Hanzenko Anton