Trump Ban Downs Dollar – a buy opportunity?

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Donald Trump continues implementing his campaign promises, including those that seemed destined only for the campaign trail and not real policy ones. On Friday, he signed an executive order that bans entries to the US from 7 predominantly Muslim countries.

Hours after Trump’s signature on the bottom line, entrants from these countries were detained and sometimes turned back in US airports. These included Green Card holders as well as other people who had obtained the right to enter the country.

A court in New York temporarily halted the order and this caused confusion. The White House then explained that it doesn’t apply to Green Card holders, adding, even more, confusion. The move was globally condemned and also received criticism from his own party.

Dollar downed

When markets opened in Asia, the dollar fell. EUR/USD jumped to a high of 1.0740, maintaining the gap and holding above 1.07 as the hours passed by.

EUR/USD: To Rally Towards 1.10 Short-Term; Sell Into This Rally Long-Term – SEB

USDJPY, which often reflects risk, dropped to 114.60. The yen attracts safe haven flows. GBP/USD, which is influenced by Brexit worries, is up to 1.2570.

Will this continue? This is a big question. It seems that the administration is reacting to the backlash and beginning to back down. A refocus of the media on other topics could also help and provide a buy opportunity on the US dollar.

However, if Donald doubles down on the measures, defying his own Chief of Staff Reince Priebus and others, things could get worse.

More: The Dollar Trump Slump [Video]

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

  • Valts Vladimir Liepnieks

    Hey everyone!

    This week seems like a really busy one for all of us.
    Just have a questions: will EUR continue going down, or we can expect a change of sentiment this week?

    Have a good one!

    • I see upwards potential for the euro this week. I may be right or I may be wrong…

      • Valts Vladimir Liepnieks

        Thank You for the answer!

        Well, I guess this was the most “politically correct” answer. khe :))

  • omahcoin

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    nalisa hari ini untuk eur usd forex

  • Valts Vladimir Liepnieks

    Hey everyone!

    Crazy day yesterday, but fun tho.
    Are we planning to see the EURUSD pullback downside or we continue shooting stars?

    What are your thoughts?

    Have a good one

    • A lot depends today on the FED, but the general trend remains dollar weakness

      • Valts Vladimir Liepnieks

        Totally agree!

        Best regards