white-house

Yellen’s Criticism Of Trump Administration Is Actually Boosting The Dollar

Here is the reason

When US Federal Reserve Chair Janet Yellen speaks, the world’s currency markets listen. Strange, then, that Yellen’s criticism of the Trump administration during her testimony to the Senate Banking Committee on Tuesday has actually driven the dollar higher against the pound.

Why should this be. Quite simply, because it helps to allay fears that the Trump administration is incapable of intimidating the Fed and forcing it to tow the line politically.

Yellen said that “economic and fiscal policy face an uncertain path under the administration of Donald Trump”, echoing sentiments expressed by Stanley Fischer, vice chair of the Fed, last week.

This is good news; the markets are understandably suspicious of Trump and are desperate for signs that his influence does not extend to controlling the rise or fall of the dollar – indeed it should be, and is, the other way around. The Fed ought to be calling the shots because they have the experience and the acumen that Trump and his new administration does not possess.

That said, the dollar’s gains have been incremental – the yield on government bonds rose on Yellen’s words, whilst UK yields are declining, meaning capital flows will favour the dollar.

So far, given the unprecedented political upheaval at the White House, markets, and especially foreign exchange markets, have not experienced the turbulence that many predicted. Becalmed markets can only be a good thing at this stage, although it’s anyone’s guess what may happen a few months down the line, when “the Donald” and his cronies have their feet more firmly under the table.

For now, however, the prospect of interest rate hikes in the US are moving the markets more than anything else, with a June, rather than a March hike the most anticipated outcome.

Meanwhile in Europe, poor UK employment stats announced on Tuesday have seen the pound fall further against the euro. Wage growth in the UK has also been weaker than forecast, and with inflation increasing, the pound plummeting even further vs the euro looks very much like an accident waiting to happen.

Best be vigilant, and if you are planning a trip abroad, we would urge you to use our comparison engine to compare the best rates from our carefully selected brokers, as well as overseas transfer agencies like our lifetime partners Azimo and Transferwise – and save yourself up to 85% of the fees you will pay to a high street bank.

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Poland Zlotych
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Israel New Shekels
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South Africa Rand
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AFN
Afghanistan Afghanis
ALL
Albania Leke
AMD
Armenia Drams
AED
United Arab Emirates Dirhams
ARS
Argentina Pesos
BAM
Bosnia and Herzegovina Convertible Marka
BBD
Barbados Dollars
BDT
Bangladesh Taka
BGN
Bulgaria Leva
AZN
Azerbaijan New Manats
BHD
Bahrain Dinars
BMD
Bermuda Dollars
BND
Brunei Dollars
BOB
Bolivia Bolivianos
BRL
Brazil Reais
BSD
Bahamas Dollars
BTN
Bhutan Ngultrum
BWP
Botswana Pulas
BYR
Belarus Rubles
BZD
Belize Dollars
CDF
Congo/Kinshasa Francs
CLP
Chile Pesos
CNY
China Yuan Renminbi
Colombia Pesos
CRC
Costa Rica Colones
CUP
Cuba Pesos
CZK
Czech Republic Koruny
DJF
Djibouti Francs
DKK
Denmark Kroner
DOP
Dominican Republic Pesos
EEK
Estonia Krooni
EGP
Egypt Pounds
ETB
Ethiopia Birr
FJD
Fiji Dollars
FKP
Falkland Islands Pounds
GGP
Guernsey Pounds
GHS
Ghana Cedis
GIP
Gibraltar Pounds
GTQ
Guatemala Quetzales
GYD
Guyana Dollars
HNL
Honduras Lempiras
HRK
Croatia Kuna
HUF
Hungary Forint
IDR
Indonesia Rupiahs
IMP
Isle of Man Pounds
IRR
Iran Rials
ISK
Iceland Kronur
JEP
Jersey Pounds
JMD
Jamaica Dollars
JOD
Jordan Dinars
JPY
Japan Yen
KES
Kenya Shillings
KGS
Kyrgyzstan Soms
KHR
Cambodia Riels
KPW
North Korea Won
KRW
South Korea Won
KWD
Kuwait Dinars
KYD
Cayman Islands Dollars
KZT
Kazakhstan Tenge
LAK
Laos Kips
LBP
Lebanon Pounds
LKR
Sri Lanka Rupees
LRD
Liberia Dollars
LTL
Lithuania Litai
LVL
Latvia Lati
MAD
Morocco Dirhams
MKD
Macedonia Denars
MNT
Mongolia Tugriks
MRO
Mauritania Ouguiyas
MUR
Mauritius Rupees
MXN
Mexico Pesos
MYR
Malaysia Ringgits
MZN
Mozambique Meticais
NAD
Namibia Dollars
NGN
Nigeria Nairas
NIO
Nicaragua Cordobas
NOK
Norway Kroner
NPR
Nepal Rupees
OMR
Oman Rials
PAB
Panama Balboas
PEN
Peru Soles
PHP
Philippines Pesos
PKR
Pakistan Rupees
PYG
Paraguay Guarani
QAR
Qatar Riyals
RON
Romania Lei
RSD
Serbia Dinars
RUB
Russia Rubles
SAR
Saudi Arabia Riyals
SBD
Solomon Islands Dollars
SCR
Seychelles Rupees
SEK
Sweden Kronor
SGD
Singapore Dollars
SHP
Saint Helena Pounds
SOS
Somalia Shillings
SRD
Suriname Dollars
SVC
El Salvador Colones
SYP
Syria Pounds
THB
Thailand Baht
TJS
Tajikistan Somoni
TND
Tunisia Dinars
TRY
Turkey Lira
TTD
Trinidad and Tobago Dollars
TWD
Taiwan New Dollars
TZS
Tanzania Shillings
UAH
Ukraine Hryvnia
UGX
Uganda Shillings
UYU
Uruguay Pesos
UZS
Uzbekistan Sums
VEB
Venezuela Bolivares
VND
Vietnam Dong
XCD
East Caribbean Dollars
YER
Yemen Rials
ZMW
Zambia Kwacha
ZWD
Zimbabwe Dollars
Very useful information and fairly up to date! I would definitely recommend the site for anyone interested in exchanging currencies!

Martin Ham

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