Global stocks marched into gains during trading this week after the renewed Trump fuelled optimism bolstered investor risk sentiment. Actions speak louder than words and the fact that Donald Trump has signed numerous executive orders since his inauguration continues to heighten hopes of the proposed fiscal stimulus measures materialising.
The depreciating dollar from the persistent Trump uncertainties has played a key part in the British pound/U.S. dollar currency pair's (GBP/USD) sharp rebound with further upside expected in the short term if the dollar remains subdued.
The Sterling/Dollar exploded into extreme gains on Tuesday with prices clipping above 1.2400 after Prime Minister Theresa May’s optimistic Brexit speech signalled that the United Kingdom was seeking a deal which would satisfy both parties.
The heightened hard Brexit fears have triggered a steep Sterling selloff during the early trading hours of Monday with the British pound/U.S. dollar (GBP/USD) currency pair tumbling to a fresh three-month low at $1.1983.
Global stocks could edge lower on Friday if the renewed Donald Trump uncertainties encourage investors to maintain a cautious trading stance. Asian shares have already turned mixed following the soft China trade data which soured investor risk sentiment, while the rising Trump fuelled anxiety could obstruct gains in Europe.
The Greenback glided higher on Wednesday as investors prepared for Donald Trump’s anticipated formal news conference. With today’s press conference the first official one since the market shaking presidential victory in November, financial markets could turn volatile.