The Senate Foreign Relations Committee narrowly voted by 11 votes to 10 to confirm President Trump’s Nominee for Secretary of State, Rex Tillerson. The confirmation process will now proceed to the floor of the Senate where Tillerson is all but assured of a majority. The Secretary of State position is equivalent to the role of Foreign Minister of the U.S.A.
Tillerson has been a controversial nominee, a Texan oil executive who has previously served as CEO of Exxon, one of the world’s largest oil companies. He also has business ties in Russia which have come under scrutiny. He has made business deals with several governments and as such may be able to hit the ground running through relevant experience at the highest level. Critics counter with the suggestion that he is too steeped in business to represent wider interests.
U.S. Dollar Recovers, British Pound Stronger
After continuing its selloff for a fourth consecutive day, the greenback has recovered over the past few hours, but not by any exceptional amount that would indicate a medium-term trend change. The currencies currently looking strong are the British Pound and Japanese Yen. The Pound is benefitting from more clarity over Brexit even as the market awaits the decision of the English High Court as to whether Parliamentary approval is required for the government to formally begin the Brexit process. It seems a Parliamentary majority in favor of Brexit is assured despite the private opinions of Parliamentarians weighing towards remaining within the European Union.
The U.S. stock market remains high, yet unable to rise and hold and new highs for a few weeks now. This is the initial sign of a deeper correction which may be about to happen, yet much will depend upon the Trump Administration’s policy announcements over coming days and weeks, which could still trigger new stock market highs.