Ahead of the first “official” news conference to be held by the US President-elect, the US Dollar eased down for the second consecutive day on investor caution. Markets are becoming increasingly wary of the Trump press conference and what it could mean for not just trade policy but especially how it relates to China. Trump has promised that there will be fiscal expansion which would help boost US growth and inflation, all of which could lead to increased interest rates coming at a faster pace than previously imagined. Since Trump was elected in early November, the Dollar Index has climbed about 4% on that promise.

As reported at 10:29 am (GMT) in London, the EUR/USD was trading nearly flat $1.0585; the pair has ranged today from a low of $1.0570 to a peak of $1.0626. The AUD/USD was trading lower at $0.7355, down 0.07% while the NZD/USD was lower at $0.6999, down 0.28%; both the Aussie and Kiwi Dollars are often viewed as a proxy for China given their strong trading relationships with China.

Hard Brexit Fears Growing on Pound

The Pound Sterling continues to feel the pressure of speculation of a “hard Brexit” from the EU with the possibility of only limited access to the single market. The GBP/USD earlier hit a 10-week low; the pair is currently trading lower at $1.2141, down 0.24%; the daily range was from $1.2104 to $1.2179. Given the impending Brexit and the inauguration of a new administration, wary traders have generally traded to the benefit of safe haven currencies.