As Donald Trump took office as the 45th President of the United States, the global financial markets were left in a state of uncertainty. The forex market, in particular, felt the impact of his presidency, leading to fluctuations in the value of currencies worldwide. In this article, we will discuss how Trump becoming President screws up the forex market.
One of the primary reasons for the forex market’s instability under Trump’s presidency is his protectionist trade policies. Trump’s “America First” agenda led to a series of tariffs and trade wars with China and other countries, causing significant disruptions to global trade. The uncertainty surrounding these policies affected the value of currencies, making it difficult for forex traders to predict market trends accurately.
Another factor that has impacted the forex market is Trump’s handling of the COVID-19 pandemic. The pandemic led to a global economic slowdown, causing numerous central banks to reduce interest rates to stimulate growth. Trump’s inconsistent response to the pandemic and his reluctance to provide stimulus measures led to fluctuations in various currencies’ values.
Trump’s tweets also caused significant disruptions in the forex market. His Twitter account was often used to express his opinions on various issues, including trade and foreign policy. These tweets often led to immediate market reactions, causing significant fluctuations in currency values. Forex traders had to be on high alert to keep up with Trump’s tweets, as they could have an immediate impact on the market.
Trump’s presidency also had an impact on the US dollar, which is widely considered the world’s reserve currency. The dollar’s value has been fluctuating since Trump took office, with some analysts attributing the currency’s decline to the President’s policies. Trump’s tax cuts and increased government spending led to a rise in the US budget deficit, which ultimately put pressure on the dollar’s value.
Furthermore, Trump’s foreign policy decisions also contributed to the forex market’s instability. For instance, Trump’s decision to withdraw from the Iran nuclear deal and impose sanctions on the country led to a rise in oil prices, which, in turn, affected the currencies of oil-exporting countries. Trump’s decisions concerning North Korea, Russia, and other countries also had an impact on the forex market, leading to fluctuations in currency values.
In conclusion, Trump’s presidency has had a significant impact on the forex market’s stability. His protectionist trade policies, inconsistent response to the COVID-19 pandemic, and foreign policy decisions have all contributed to fluctuations in currency values. Forex traders have had to be on high alert to keep up with the President’s tweets and policy decisions, making it difficult to predict market trends accurately. As we look to the future, it remains to be seen how the forex market will react to the policies of Trump’s successor, Joe Biden.
