US dollar managed a small comeback after opening lower at week start. Early into this week the USD was selling off after President’s Trump failure to pursue and pass the healthcare bill as he had promised to do. The healthcare bill was being seen as a litmus test of upcoming government proposals particularly the expected tax cuts and fiscal stimulus, so the Government’s inability to perform on this initial bill did not bode well and trigerred a sell off in the USD.
As is usually expected price action looked into closing the gap seenat week’s open. The US dollar index (DXY) recovered 99.77 levels – the levels it had closed at last Friday. The DXY is currently at 99.74.
The US dollar was also helped by Fed speaker Stanley Fischer suggesting that two more rate hikes this year should be expected.
The British pound remained particularly vulnerable ahead of Theresa May officially applying to leave the European Union later today. GBPUSD slipped to session lows of 1.2441 on Tuesday, after opening at 1.2557; this morning the currency pair went even lower and has so far seen lows of 1.2376.
The USD’s small recovery reflected also in the EURUSD. Yesterday the currency pair stopped ahead of a horizontal resistance around the 1.0880 area and slipped lower to yesterday’s session lows of 1.0798. EURUSD is currently at 1.0815.
