USD recovers after special counsel appointed

0

Finally some political calm, at least temporary. After the big crash on the Comey memo, we have a greenback comeback. The US Department of Justice (DOJ) has appointed a special counsel to investigate a potential collusion between the Trump campaign and the Russians in the run-up to the 2016 elections.

Former FBI Director Robert Swan “Bob” Mueller III was appointed by George W. Bush and his term was extended by Barack Obama. He enjoys high credibility. The move was praised by politicians on both sides of the aisle.

The investigation may take a long time and Mueller is known to manage a “tight ship”. He is considered thorough and does not give many interviews. So, the topic could be put to rest for some time. Needless to say, he may reach the conclusion that Trump colluded with the Russians and tried to obstruct justice. He may also reach the opposite conclusion.

USD recovers

What matters for markets is that at this point, the story might return to the backburner. Putting it aside at least for now may allow progress on what markets want to see from Trump: tax reforms, infrastructure spending, and deregulation

After the big crash yesterday, USD/JPY is above 111 once again, trading at 111.30. EUR/USD dropped from the highs of 1.1170 to support at 1.1120. This 1.1120 level worked as a double-bottom back in September.

More: EUR/USD: 5 Reasons To Stay Bullish; Where To Target? – ABN AMRO

Here is the EUR/USD chart:

Get the 5 most predictable currency pairs

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.

Comments are closed.