US Dollar Sunk this January to its Lowest Start in Decades
Dollar Power Weakens
January 31st marked the darkest economic point of what has been a very short (and very dark) presidency. Initial Trump Election Market robustness surprised some. Also, it also pleased more than a few in the post-election days. After the election of Trump, the DOW Jones and the Dollar were enjoying excellent market stability and growth. It was unexpected for the Dollar to reach such high prices. Furthermore, it even reached near-parity with the Euro. However, January has shown us not everything was as good as it first seemed.
There a few theories as to why this is happening. First, its important to know the U.S.A has had a policy of maintaining a strong currency for twenty years. Then, there is Trump’s Executive inexperience and virtually non-existent ideology. This causes uncertainty and trouble in world markets. Uncertainty and trouble related to the U.S inevitably rebound on the Dollar. Now, after a few days of Trump, it is losing ground to the Euro, and to Gold. What few pundits and analysts expected though, was this historically low January. For the Dollar then, the position it was in as of January 31st made this month its worst start to a year in three decades. Also, the strong start the U.S Economy experienced was better than average before inauguration. Therefore, this is interpreted as a blunt sign of market distrust.