Westpac: FX market to focus on Trump's ‘policy achievements or lack thereof’

The bank expects EUR/USD to trade at 1.05 in Q3 2017, and at 1.00 by the first half of 2018

tax-scrabble bigger canvas
In play: "Tax reform, especially a repatriation tax break, and infrastructure spending will be of most interest to FX markets” – Sean Callow

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The discrepancy between US President Donald Trump’s promised fiscal measures and his actual achievements will be firmly in focus for currency markets in the coming weeks as the Federal Reserve weighs up the chance of these policies succeeding, according to Sean Callow, a senior currency strategist at Westpac.

“Trump’s policy achievements, or lack thereof, will remain important for the dollar, given there is still plenty of optimism over the US economy priced into