April 29th marks a special milestone in Donald Trump’s Presidency – the 45th President’s first 100 days in office.
Historically seen as a test of US leaders, passing the 100 day marker usually offers a time for reflection.
In Trump’s case, this could be the most heavily scrutinised first 100 days in history, given the near-continuous stream of controversy seen after the Commander in Chief’s January inauguration.
Trump made countless promises and pledges during his 2016 election campaign, but how have these faced up to reality? In this article, we’ll be taking a look at the fate of Trump’s biggest plans and how the US Dollar has been affected by the radical new President.
One of Trump’s first actions was to pull the US out of the Trans-Pacific Partnership (TPP), a multi-national trade deal only just agreed to by the Obama administration.
While the move stuck to Trump’s anti-globalisation stance, the news still shocked traders, causing modest US Dollar declines against the Pound (GBP) and Euro (EUR).
A quick-fire response to immigration also saw the US Dollar crash, when Trump enacted a temporary travel ban on seven predominantly Muslim countries.
The travel ban was quickly shut down by a federal judge, which foreshadowed future clashes between Trump and the US legal system.
The US Dollar rose sharply against the Pound and Euro in early March, hitting 0.82 and 0.94. This appreciation came without the President’s influence, however, caused instead by a forecast-beating rise in February’s employed persons.
At the time, Trump was mired in a fresh scandal about surveillance, having claimed that the Obama administration had ‘wiretapped’ his New York offices. The President also attempted to refloat the previously blocked travel ban with some minor adjustments. In a case of déjà vu, this was also quashed by judges.
The greatest defeat of Trump policy, however, was yet to come. During the election, one of Trump’s key promises was to repeal and replace Barack Obama’s Affordable Care Act (ACA).
Opposition to the controversial bill reached a head in late March, when it was withdrawn from the House of Representatives. This was a face-saving action, due to fears that the bill would be publicly rejected by a majority.
Seen as a highly embarrassing defeat for Trump, the news sent confidence in his governance to a fresh low, dragging the US Dollar down with it. Compared to the best exchange rates in March, USD GBP slid from 0.82 to 0.79 while USD EUR slumped from 0.95 to 0.92.
Since this setback, the US Dollar has hit fresh lows of 0.77 against the Pound and 0.91 against the Euro.
These losses come as another memorable election promise, to build a vast Mexican border wall, has been derailed. Amid fears of a government shutdown over objections to the mammoth project, funding for the wall was left off a recent spending bill.
Trump recently stated that ‘no administration has accomplished more in the first 90 days’. With his biggest campaign promises off the table or severely watered down, this statement could come back to haunt the President as he looks ahead to the rest of 2017 and beyond.
These are still early days for the Trump Presidency and further US Dollar losses could be incoming. Keep an eye on TorFX currency news for any US Dollar updates and to stay up-to-date on the latest Donald Trump news.
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