Currency comment 3/28

Steve CaldwellGeneral Commentary

In classic fashion we saw “Turn around Tuesday” today. All of the losses in U.S. financial assets seen Monday were made up by strong rallies Tuesday.  The dollar and stock indexes rallied while bonds dropped.

The cause for Monday’s drop was political and the cause of Tuesday’s rally was also political. Traders who worried that the failure to change Obamacare on Friday indicated weakness of the new administration were cheered when the president signed an executive order overturning many Obama regulations regarding climate change. The feeling of investors is that loosening regulations will help the U.S. economy grow faster.