USD feeling pressure both ways

President Trump yesterday carried through on his campaign promise to move the US Embassy from Tel Aviv to Jerusalem. This move has received strong reactions from various sides and could pose some downside risk to the Dollar depending on how the situation plays out in the Middle East.

A preliminary jobs report published by US payroll giant ADP shows 190,000 jobs added in the month of November, which has been positive for the USD.

Trump will meet with members of both parties today as he tries to negotiate a long term budget deal to prevent further charades across debt ceiling negotiations.

David Davis derided

David Davis, Secretary of State for the Exiting of the European Union has somewhat comically said that the UK government has done no analysis of the impact of Brexit on a sector by sector basis after he had previously told parliament and the populous that thorough analyses had been conducted. To be strategy-less is far from positive for the Pound, and GBP is trading below 1.337 at the time of writing.

The Telegraph is reporting that President Juncker of the European Commission has said he fears May’s government may collapse if the Brexit talks remain at an impasse. The deadline is reportedly extended until next Thursday’s EU meeting and we will likely see some choppy waters through that date and beyond if the deal with Northern Ireland is not forthcoming.

No surprise here

Today we saw EUR slide further against the USD below the 1.18 level. The latest GDP numbers were 2.6% as expected so the strength we see this morning is likely Dollar positive on optimistic sentiment regarding tax reforms and ahead of strong NFP predictions for the greenback tomorrow.

Here at WorldFirst we’re looking forward to our holiday party this evening, and we wish you all a happy holiday party season too.

Christopher Morriss, The WorldFirst Team