US Dollar Down after Trump Picks Most Hawkish Option for Treasury Secretary.
The US dollar (USD) weakened nearly 1% at the start of the week after President-elect Donald Trump confirmed the nomination of Scott Bessent over the weekend as Treasury Secretary in his incoming cabinet. Bessent is considered a fiscal hawk, targeting a budget deficit of 3% of GDP by 2028 and indicating that he supports tariffs and tax cuts. Investors appeared to view the nomination as a positive as it eased some concerns about the impact of Trump’s fiscal plans.
The US economic calendar is facing a somewhat odd week with a national holiday on Thursday for Thanksgiving. All US data for Thursday and Friday has been moved to Wednesday, with Personal Consumption Expenditures (PCE) for October, the second estimate of US Gross Domestic Product (GDP) for the third quarter, and weekly jobless claims the most influential data. Monday is off to a somewhat soft start with the Chicago Fed National Activity Index for October and the Dallas Fed Manufacturing Business Index for November due out.(Cay)
Source: Fxstreet