Washington continues to struggle to replace the existing health care bill as two other Republicans (4 so far) anounced they will not vote in favour of the Republican-proposed health care bill. If we zoom out of to get back to the bigger picture, these delays are largely percieved as damaging and seen as delaying Trump’s agenda and ability to effectively push through new legislation.
Overall sentiment remained positively-inclined however with the Nasdaq and S&P closing off in positive territory, while the DJI suffered some marginal setback.
From the currency markets however we see that the US Dollar continued to suffer losses as it marked 10-month losses on the US Dollar index(DXY), an index measuring the strength of the USD against a basket of currencies. The DXY is currently at 94.77. It looks like the USD reacted to what was going on in Washington but has also been under pressure on expectations that the Fed will be more cautious with its tightening, especially after Yellen’s testimony to congress last week.
The euro continues to take the cue from a weaker USD and has so far pushed to levels last seen in May 2016. EURUSD, currently at 1.1534 is seen pursuing higher levels with the Realtime Forex’s TraderTip seeing the possibilty for a rise above 1.16. The EURUSD trend remains well in bullish mode and seems to be eyeing May 2016 highs of 1.1616.
No high impact data expected today, however today’s economic docket includes EZ construction output, US Housing starts, US Building Permits and Crude oil inventories.
