Trump, Watergate and Gold

Could Trump be facing his own Watergate?
The president’s firing of FBI director James Comey in the midst of probes into the administration’s possible connections with Russia set off a political firestorm. There has even been talk of impeachment in recent weeks.
While at this point, much of the rhetoric spinning around the Beltway is political in nature, the controversy surrounding the administration still spells trouble for Trump. Even if there is no fire burning underneath the smoke, political opponents will undoubtedly leverage the chaos to slow the administration’s agenda.
Head of commodities strategy at Saxo Bank A/S in Copenhagen Ole Hansen told Bloomberg that could mean a bad news for the dollar.
It’s a political dogfight. That does mean that his ability to act as a president, and to do what he’s promised, is sharply reduced and in that lies the risk of dollar weakness.’
Trump has struggled finding footing in the political arena since he took office. Republicans still haven’t come through on their promise to repeal and replace Obamacare. And while the administration introduced an ambitious tax reform plan to much fanfare in April, little has happened since.

This post was published at Schiffgold on MAY 22, 2017.