Dollar under pressure, Gold shines after Trump press conference

The Dollar climbed ahead of President-elect Donald Trump's press conference today, but USD bulls were clearly disappointed by the result, as Trump failed to give any details about his economic plans. Instead, he spent most of the time defending himself from the recent Russia accusations, as well as bashing the media. Regarding the economy, he only mentioned briefly that he has met many executives and investors in the past weeks, and promised to create plenty of jobs.

However, the lack of details bothered traders and broad USD selling followed. EUR/USD jumped back above 1.06, while GBP/USD rose almost to 1.23 after trading briefly with a 1.20 handle just two hours before. Meanwhile, USD/JPY broke below the 115 level, which is quite bearish and suggests a deeper retracement might be ahead.

The commodity currencies caught a bid as well, with both the Aussie and Kiwi Dollar up more than 1.10 % on the day. AUD/USD rose to a high of 0.7470 so far, and key resistance is now seen at 0.7525. A break above that level would signal an extension of the rally to 0.77. NZD/USD cleared the key resistance area at 0.7040/50, and a move towards 0.7235 seems likely now.

Trump had also a negative effect on equities. He criticized pharma and defence companies once again, which dragged the NASDAQ and S&P 500 lower. The negative sentiment might spill over into Asian stock markets as well.

Precious metals benefited from the Dollar sell-off. While Gold was not able to reach $1200 resistance immediately, a breakout seems imminent now.

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