President D.Trump abruptly cancels negotiations to discuss the latest stimulus plan into the US economy in order to cope with the Covid-19 crisis which is still a major problem in the country.
"I have instructed my representative to stop any negotiations on the stimulus plan until the end of the November presidential election, once I win, the Stimulus Plan will be approved immediately and will focus on hard working Americans and assistance to small businesses across the country," he said. This is Trump's tweet via Twitter last Tuesday.
Trump's actions surprised many, including Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi, who are in the process of exchanging papers for several days in the hope that both the government and the opposition will sit at the same table to set aside any differences and reach an agreement.
Trump's move puts the US Dollar in a risky category due to the uncertainty of the political future there. Political uncertainty is something that investors and traders do not like.
Some major world currencies such as the Euro and GBP are seen to strengthen slightly against the US Dollar. Gold prices were also stable and showed little positive reaction after D.Trump made this surprise decision. The US30 Index Market recorded a slight decline yesterday of 5% while the US500 also recorded a slight drop yesterday.
USD DOLLAR CURRENCYThe value of the US Dollar at this time depends on the situation of November 2020 after the US Presidential election is over. If D.Trump manages to retain his seat as President, and succeeds in influencing the Federal Reserve to continue its existing monetary policy, it is very likely that the value of the USD will fall slightly as the current policy policy is to more aggressively inject funds into the economy and increase stock market volume.
The lower USD value will help make the current monetary policy a success.
THE LATEST ANNOUNCEMENT OF TRUMP WILL PUT US DOLLAR AT RISK