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Evergreen buck nurses losses after recent selloff on Trump policy blow
On Wednesday, the evergreen buck was nursing losses near-multi-month minimums versus a currency basket in the wake of an abrupt selloff generated by concerns that Donald Trump is struggling to implement his policy agenda.
The US dollar index, used to tack the greenback’s actual strength versus a basket of key major currencies, soared 0.14% being worth 94.56.
On Tuesday, the index hit a minimum of 94.27, which is the lowest outcome since August 26, 2016. Moreover, it dropped more than 7% for 2017 to date.
The greenback sold off after Republican lawmakers dared to pull the plug on the fresh version of a contentious bill to substitute Obamacare, thus delivering a key policy blow to the Trump administration.
The inability to deliver on healthcare reform showed that Trump’s other legislative attempts, including overhauling the tax code as well as implementing fiscal stimulus could be troublesome.
The greenback stood still versus the Japanese yen, with USD/JPY sticking to 112.05, soaring from a Wednesday minimum of 111.67.
The common currency turned to be a dip lower, with EUR/USD slumping 0.19% being worth 1.1531, which is not far from Wednesday’s 14-month peak of 1.1582. It’s because traders were still cautious ahead of the approaching ECB meeting.
Now traders follow the economic events with new vision as inflation in the US seems like decreasing. Let’s see what releases will influence the market due to that factor.
The week will have the biggest event in the US political process over the last two years. How will the elections affect the Forex market? We covered the most important news of this week in this report.
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.