European shares drifted lower on Wednesday, while sterling battled back from a one-week low and regained its composure amid the drama of Britain formally triggering its exit process from the European Union.
The dollar and share prices tumbled on Monday, as investors worried that U.S. President Donald Trump's defeat over healthcare reform foreshadowed difficulties delivering other key campaign promises, in particular, fiscal stimulus.
The euro/U.S. dollar currency pair gained 0.542% in the last five trading days. The single currency is trading at 1.0805 as President Trump's healthcare bill faces strong opposition. The President has declared that if the bill is not approved on Friday he will leave Obamacare in place.
The renewed protectionism concerns and Trump jitters have triggered risk aversion this week consequently attracting investors to safe-haven assets. In times of unease, gold remains a trader’s best friend and such was displayed on Thursday when the metal punched above $1,253 per ounce.
For the first time in over five months, U.S. stock indices suffered losses of one percent or more in a single session. Some said it was the end of the so called “Trumpflation” trade, some blamed crude oil and others cited a combination of these and other factors. Whatever the reason, it was a sizeable move. The signs were all there. Safe haven gold and Japanese yen had been rising since December.