US Government Blame North Korea for Cyber Attack

For the first time the United States have officially blamed North Korea for the attack on WannaCry earlier in the year. The virus affected around 200,000 computers across 150 countries, exploiting weakness in Microsoft Windows. This year the US and North Korea came closer than ever to coming to war, as North Korea continue to test nuclear missiles at one-point firing one directly over mainland Japan. President Trump has not been afraid to verbally address North Korean leader Kim Jon-Un, and this latest announcement suggests that hasn’t changed.

Moving forward, it’s unlikely that the latest developments will cause any further events, however if there was further war rhetoric then the US Dollar could strengthen. Considered the major safe currency of the world, whenever trouble looms the US Dollar receives major investment with investors putting their money in a safe place. We haven’t seen these sorts of movements in a short time, but a North Korea saga could certainly change that.

Tax Reforms

President Donald Trump’s major tax reforms appear to have passed through the Senate and should be implemented at the beginning of next year. Corporation tax is expected to fall from 35% to 21% which should help companies to invest further funds into projects. The theory is by cutting tax for both consumers and companies, there will be more money in circulation as opposed to sitting with the Government. There are obviously concerns from many that it’s just a tax cut for the rich and that there will be a huge amount of debt racked up by the Government.

The US Dollar has already gained from Trump’s rhetoric and this new policy looks set to continue the trend. US Stock Markets have kept breaking record highs and continue to climb as President Trump creates a business-friendly economy. The US Dollar could well continue to gain and move the GBP/EUR closer to 1.30.