Dollar Strikes Back

Dollar Strikes Back thanks to Trump

The dollar came back yesterday after US President Donald Trump’s healthcare bill got postponed for next week. The bill is considered as a first test of passing something through congress, and is seen as an indication as to whether the rest of his TAX policies will have a chance to materialize in the future. 

• With the postponement of the US health care bill vote, yesterday marked the quietest session in an already quiet week for FX markets.
• The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.15% at 99.71, off Wednesday’s six-week low of 99.34.
• USD/JPY gained 0.34% to 111.31, off Thursday’s four-month trough of 110.63. EURUSD edged lower to 1.0758 while GBPUSD dropped to 1.2473 after reaching 1.2530 following Thursdays improved Retail Sales numbers.
• Gold prices slipped from their recent $1253 highs, after the Dollar rebounded on the postponement of the healthcare bill. Gold dropped as low as $1240.85 with next support level at $1237.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.25% rise, S&P 500 futures showed a 0.19% gain, while the Nasdaq 100 futures indicated a 0.26% increase.