The US Dollar Index struck a 1½ month trough following Donald Trump’s inaugural speech on Friday which appeared more protectionist than was expected. Trump said that all of his decisions would be done in order to benefit or protect American families and workers, with protection ultimately leading to “great prosperity and strength.” Trump also signaled that he intended to renegotiate the NAFTA agreement which the US has with both Canada and Mexico. He also plans to withdraw from the TPP trade pact which would have an impact on trade with the Asian-Pacific region.
As reported at 10:25 am (GMT) in London, the US Dollar Index was trading at 100.340 .DXY, down 0.40%. The GBP/USD was trading higher at $1.246, a gain of 0.73%. The EUR/USD was also higher at $1.0738, a gain of 0.38%. The USD/JPY was down 0.95% to trade at 113.51 Yen.
Hope of Supreme Court Mandate Lifts Pound
Among developed markets, the Pound Sterling took the lead, touching a 5-week peak at investors pin their hopes on the Supreme Court there to mandate that Parliamentary approval would be needed to trigger formal Brexit proceedings. The GBP/USD had edged up to $1.2472, a gain of 0.8% before inching back.