US Dollar, British Pound and Crude Oil Lose In the Forex Market
By Anatol Thomas
The forex market is heavily influenced by the political events all over the world. The failure of the Trump administration to pass the health care bill is not liked by the investors. The republicans have been against the Affordable Care Act, known as Obamacare. Now that the Republicans control the House, White House and Senate, investors were hoping that it would be easy for Trump to bring about the promised reforms. The failure of health care reform has motivated the investors to question Trump’s ability to provide tax deregulation, tax cuts and infrastructure spending as promised. This has directly affected the US dollar value in the forex market.
The Great British Pound also experienced a dull day at the forex market as Theresa May has been given the power to invoke Article 50. Hard Brexit implies that Britain won’t be able to retain the single market. The upcoming Scottish referendum has also raised concerns among the investors. Scotland voted 62% to stay with the UK in 2016. A new independence referendum has put the pound under tremendous pressure. However, a recent poll has indicated that Scotland won’t request for another independence referendum, as it has more deals with the UK than with EU.
Despite the efforts of the OPEC, to improve crude oil prices, the oil price continues to struggle. The inflationary readings will not have any effect on the crude oil prices. The global oil producers should come forward and agree to production cuts, to stabilize the market.
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