In a possible sign that the so-called Trump trade may be unraveling, the U.S. dollar is wavering and analysts are less certain of where it will go.
The U.S. dollar index hit a one-month low Thursday after President-elect Donald Trump disappointed investors in a Wednesday press conference. Rather than discussing infrastructure spending, deregulation or tax cuts, Trump emphasized a tough position on trade and a border tax.
"The market had priced in a very positive scenario of Trump: fiscal policy without trade protectionism," said Athanasios Vamvakidis, a European currency strategist in Europe for Bank of America Merrill Lynch.
"That's why the press conference is a scare," he said, noting that traders are now focused on the dollar and what the new administration does after next Friday's inauguration.