We were in doubt as to whether the dollar’s previous bull run was resuming, but after the Fed’s action we continue to see the dollar’s bull market as over. The Fed’s action will affect the currency [and gold and silver] markets for some time to come [months] as it is a structural path that was not expected by markets. Markets expected a considerably more hawkish Fed statement. We cannot see this before the end of the year, if the U.S. economy becomes more robust than it is now.
On top of this we are now seeing more of President Trumps policies unfolding as he ‘muscles-up’ the U.S. government and defense departments at the expense of the State Department, etc. But we await his infrastructure spending plans.
But it is clear that his road through the Senate is going to be difficult. It is also clear that his implementation of his policies will run the same gauntlet. The exuberance of expectations is losing steam now the market sprint will likely slow to a plod. This points to a weaker dollar and better gold prices, we feel.