The Influence of Donald Trump is Considered to be the Main Movement of USD
Donald Trump’s Influential Dollar Policy – If you hear Donald Trump’s name, surely you will find out. As we know, Donald Trump is known as the controversial president of the United States. Donald Trump was born on 14 June 1946. His place is at Jamaica Hospital Medical Center, Queens, New York City.
About Donald Trump
Before becoming president of America, Trump was known as a successful businessman. Trump started his real estate business at the age of 22. Even because of his success, in 1982 Donald Trump entered the list of 400 rich people for the Forbes magazine. With an estimated wealth of 200 million dollars. His company covers real estate, hotels, golf courses and casinos.
With his popularity and success, Donald Trump later declared himself a US presidential candidate. Precisely he declared to be president, in June 2015 at Trump Tower. In his speech, Trump carries key points such as terrorism, illegal immigration, and US debt. In 2016, Trump officially registered himself as a US Presidential nomination through a republic party. On November 8, 2016, Donald Trump officially became president of the United States
After he became president this, many people say, Trump greatly affect the dollar.Although in fact every president of America always has an influence on the dollar, but it is not as big as Donald Trump. This is because, Donald Trump is a very popular figure, both among institutional traders and retail traders. Even in various livestreams, news, forums and articles, we will often see Trump trade.
Donald Trump’s Influential Policy On Dollars
Trump trade is a term of trading strategy in the face of Trump speech, either before, during or after the speech is over. This is because every Trump speech, always has an impact in time that can not be determined. But aside from his speech, the most influential of the 45th president of America was his controversial policies. Here are some of Donalt Trump’s policies that affect the dollar:
DONALD TRUMP POLICY AFFECTS DOLLAR – REDUCES TAX RATE FOR COMPANIES 20%
With the drop in taxes, Trump expects the American economy to grow faster. This tax reduction could be a factor driving USD increase
DONALD TRUMP’S INFLUENTIAL DOLLAR POLICY – INCREASING FISCAL STIMULUS-ESPECIALLY IN INFRASTRUCTURE AND DEFENSE
With the increase in government spending, Trump hopes to lead to an increase in inflation. If inflation rises, the interest rate may also rise. This is what then can push the USD increase
DONALD TRUMP’S INFLUENTIAL DOLLAR POLICY – INCREASING EMPLOYMENT
If employment increases, the activity of the American economy will increase. This is then what is expected to push up the USD.
DONALD TRUMP’S INFLUENCE ON DOLLARS – REMOVING REGULATIONS THAT AGGRAVATE US COMPANIES
The abolition of this rule aims to encourage US companies to grow faster. For example by reducing the cost and time for the company in taking care of its legality. That way the American government hopes, local US companies more and more and grow faster. Even with the abolition of this regulation, they expect the emergence of new companies. This is also very expected to help raise the USD
DONALD TRUMP POLICY INFLUENCES ON DOLLARS – RENEGOTIATE OR GET OUT OF NAFTA
In Trump’s opinion with the NAFTA deal, the United States was harmed. One of them, about the entry of Mexican labor into the US without being subject to import duties. For example America is out of NAFTA, meaning US can impose taxes on foreign workers like Mexico and Canada. With this tax, the US government will get a higher tax revenue and could drive the USD increase.
Up Down US Dollar in Trump Government era
During the Trump administration era, it was clear that the dollar was expected to strengthen. Even the dollar appreciated, after a few months Trump won the election. But unfortunately not long after Trump was elected, precisely on March 2, 2017. At that time the dollar experienced a turning point. The dollar started dropping steadily, to its lowest point in three years. Since Trump’s election as president, the dollar index has fallen by -11.71% from its highest point.
The cause of the fall of the US dollar , arguably the main factor is Donald Trump itself. This is because since Trump became president, global investors feel uncomfortable investing in America. Although the policy program looks good for American economic growth, it is not necessarily that the policy can be implemented without interruption.
Trump’s policy is considered too controversial and high risk by investors. Call it the Trump policy that wants to leave NAFTA. If this is really the case, it could pose major risks such as bilateral easing between the United States and Mexico. There are even other risks, such as the disruption of large American companies that could be collapsed. The reason is because of their strong dependence on Mexico and Canada. This will lead to economic instability for the United States itself.