The US economy grew in the first quarter despite expectations that there was going to be a drop compared to the previous quarter. The boost was put down to consumer spending which appears to have continued despite some potential uncertainty with Trump’s new policies.

Trump and his administration have set themselves a 3% target for growth and the latest reading of 1.4% is still a long way off. Whether Trump in the next few years is able to cause a jump in growth as he demands is yet to be seen. However, if there is a major cut in taxes and more room for consumer spending then that could help growth. This of course would have a controversial effect on the most vulnerable in society as welfare would be cut; we have already seen a movement in this direction with the new health bill replacing Obamacare.

The Trump effect is set to have a significant effect over the next few months as he tries to implement the changes he mentioned in his manifesto to get voted in. The Senate have already made several of his plans tricky to implement but as the travel ban gets introduced once again tonight, he is slowly getting his way.

Tomorrow is expected to be a fairly quiet day for the US Dollar with only low key releases for consumer expenditure. Following the positive GDP data today it’s likely that the data will be reported better than expected. There is always the risk that any major unexpected data can cause volatility so make sure you keep an eye on things.