US dollar falls
Mihir Kapadia – CEO and Founder of Sun Global Investments, writes on the latest.
The US dollar fell again as fresh problems in the Trump White House pointed to growing disarray. The dollar Index has fallen through 2017, though the Trump administration will not be too unhappy about this, as it improves the country’s export competitiveness. However, this has clearly been a negative factor for overseas investors in US assets, increasing their costs or reducing their profits . The next key factor for the US dollar will be the US July non-farms payrolls report which will be released on Friday.
In the US markets, the Dow industrials finished at an all-time high on Monday, but the S&P and Nasdaq were held by losses in Technology Stocks. The highflying FANG stocks were all down between 2 per cent and 3 per cent. The fall in technology stocks may be due to end-month profit taking by Hedge Funds and others after the tech-Heavy Nasdaq had risen an almost unprecedented 10 days in a row in late July. The next key factor for these stocks will be Apple results which are due today.