Whatever strategy Trump opts for in the investigation of his relations with Russia the president seems to be “sawing a leg of his own presidential chair.”
The new details appear in the firing of the FBI’s head James Comey, causing significant concern in the financial markets. The media allegedly received a memo from Comey, a key figure in the investigation of Russia’s influence on the presidential election in 2016, which states that Trump asked the head of the FBI to stop the investigation of the former presidential adviser Michael Flynn. According to the note, Trump called Flynn “a good guy” and asked the Komi “to let it go,” which ended with the resignation of the adviser, who was caught in secret relations with the Russian ambassador in the United States. The White House denies that Trump tried to hush up the investigation, but if it turns out that the president really stood up for the counsellor’s defence, this could be regarded as an obstruction to justice, which could potentially be the basis for an impeachment.
The imminent political crisis in the US had a negative impact on the US Dollar, which continues to sag under the pressure of uncertainty. The fiscal and tax plans are likely to be postponed from the government’s agenda, which definitely disappointed the markets. The weighted average of the Dollar index fell below 98.00 points, US stock markets are trying not to succumb to pessimism, closing with a slight drop on Tuesday.
The growing tension caused the growth of defensive assets, Gold added about 1% on Wednesday and the Japanese Yen increased 0.65% against the Dollar. The Euro and the British Pound are trading in a positive territory as data on wages in the UK and consumer inflation in the European Union was in line with expectations.
Oil fell after disappointing API data, indicating an increase in inventories, markets are waiting for a confirmation from the US Energy Department.