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Sunday, April 19, 2026
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Trump’s ‘America first” Leaves Oversees Stocks and own Currency in Second’

Michael Hewson, Chief Market Analyst at CMC Markets UK:

It’s been a disappointing start to the week across the board today as European investors take a risk off position after Friday’s “America First” President Trump inauguration speech on Friday, as European markets decline across the board. The narrow one dimensional focus of the new US President’s comments, as well as his first executive actions in looking to renegotiate NAFTA and pull out of the Trans Pacific Partnership (TPP) has raised concerns that he is placing greater importance on protectionist measures than his pledges to implement tax cuts and infrastructure spending. 

Even though US markets managed to rally into the close on Friday in the wake of new President Trump’s rather protectionist speech, overseas markets haven’t been anywhere near as sanguine, dropping back as currency markets gave their initial verdict sending the US dollar sharply lower.

The US dollar’s weakness that was starting to manifest itself last week has accelerated today in the aftermath of Friday’s populist Presidential inauguration speech prompted further weakness, due to a lack of detail on what fiscal measures the new administration would undertake to boost the economy. The US dollar index has slid to its lowest levels since the 8th December, just before the Fed raised rates. The best performers have been the Japanese yen as US treasury yields fell back, while the pound has continued its recent gains ahead of tomorrow’s Supreme Court ruling on the triggering of Article 50.”

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