Why the USD will go on rising

The US Dollar Index is down a good 3%, to 99.9 on January 25 from a high of 103.3 on Dec 28. The main reason is uncertainty over the future of trade and international relations with the US.

Since taking office on Jan 20, President Donald Trump has already yanked the US from the Trans-Pacific Partnership, called for renegotiations to terms of the North American Free Trade Agreement and will soon order the construction of a Mexican border wall.

The moves ring true to Trump’s campaign promises and have forced the market to view the new POTUS in a different light. Now, Trump’s threats of starting a trade war with China and public comments on the USD being overly strong are being taken seriously, and that’s put pressure on the currency.

Yet, analysts and strategists view the dip in the USD versus the Japanese yen, euro and even …

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