something interesting

<  BACK TO Market Analysis

Week Ahead Trump Administration Fails with Healthcare Bill

Dollar softer after week full of political uncertainty

The USD ended the week with a muted market reaction as the Trump administration pulled the healthcare bill as there was a lack of support from Republicans to pass the bill into law. The Trump administration has lost momentum as their choice of policies to champion out of the gate were not the ones the market expected after a Trump win in the U.S. election. The comments from House Speaker Ryan and President Trump is now to focus on pro-growth policies which were the ones that sparked the Trump trade, also known as the Reflation trade.

The week of March 27 to 31 will feature a light economic data calendar with the highlight being the German Business Confidence on Monday, March 27 at 4:00 am EDT, the U.S. Consumer Confidence on Tuesday, March 28 at 10:00 am.

The silver lining for the dollar on the failure to push the healthcare bill is that it clears the way for awaited reforms such as taxes and infrastructure spending. Treasury Secretary Steve Mnuchin said earlier today that a tax overhaul was coming soon even before of the healthcare bill was pulled. In his words tax reform is a lot simpler than health care. FOMC speakers will be also front and center with Evans, Kaplan, and Kashkari set to speak at several events during the week.

The EUR/USD gained 0.542 percent in the last five trading days. The single currency is trading at 1.0805 as President Trump’s healthcare bill faces strong opposition. The President has declared that if the bill is not approved on Friday he will leave Obamacare in place.

There were few economic indicators released this week in Europe and the United States. Unemployment claims in the U.S. came in higher than expected at 261,000 with core durable goods also missing forecasts with a 0.4 percent gain.

The Trump administration is proving to be one of the fastest to lose the post election momentum. When he was the president-elect Trump was able to get markets excited with the promise of pro-growth policies focused on tax stimulus and infrastructure spending. The Trump trade started to crumble when due to political reasons the first policies signed by President Trump were aimed at immigration, anti-trade and now healthcare reform facing tough opposition form the Democratic party and in the case of healthcare even from Republicans.

On Monday, March 27 the German Ifo Business Climate will be released at 4:00 am EDT. Confidence from German manufacturers, builders, wholesalers and retailers participate in the survey that has been improving slowly since September 2016. Consumer confidence in the U.S. will be released on Tuesday, March 28. The disconnect from strong consumer confidence and softer retail sales is expected to continue with the release of the Conference Board data. The Final GDP will be released on Thursday, March 30 at 8:30 am EDT. The third release on the fourth quarter gross domestic product for the United States.

XAU/USD gained 1.806 percent in the past five days. The price of gold is trading at $1,253 as political uncertainty surrounding the healthcare bill in the U.S. made the yellow metal increase its appeal as a safe haven. Gold rose against the USD as the greenback lost ground ahead of the healthcare bill in congress. Eventually the bill was pulled for lack of support and it raises questions marks about the future of Trump policies in particular fiscal stimulus and infrastructure.

Oil lost 2.498 percent in the least week. The price of West Texas is trading at 47.47 as the effects of the Organization of the Petroleum Exporting Countries (OPEC) production cut agreement are being offset by higher inventories in the U.S. as more shale producers are coming online. U.S. drillers added the most oil rigs since January.

There is a meeting in Kuwait this Sunday where OPEC and non-OPEC members will discuss the future of the production cut agreement and a possible extension. The weakness of the USD has kept the price of oil from falling further, but as doubts emerge around the next agreement and the impact producers that are not part of it could have as they ramp up production as prices are stable.

Source: marketpulse.com

Dollar softer after week full of political uncertainty

The USD ended the week with a muted market reaction as the Trump administration pulled the healthcare bill as there was a lack of support from Republicans to pass the bill into law. The Trump administration has lost momentum as their choice of policies to champion out of the gate were not the ones the market expected after a Trump win in the U.S. election. The comments from House Speaker Ryan and President Trump is now to focus on pro-growth policies which were the ones that sparked the Trump trade, also known as the Reflation trade.

The week of March 27 to 31 will feature a light economic data calendar with the highlight being the German Business Confidence on Monday, March 27 at 4:00 am EDT, the U.S. Consumer Confidence on Tuesday, March 28 at 10:00 am.

The silver lining for the dollar on the failure to push the healthcare bill is that it clears the way for awaited reforms such as taxes and infrastructure spending. Treasury Secretary Steve Mnuchin said earlier today that a tax overhaul was coming soon even before of the healthcare bill was pulled. In his words tax reform is a lot simpler than health care. FOMC speakers will be also front and center with Evans, Kaplan, and Kashkari set to speak at several events during the week.

The EUR/USD gained 0.542 percent in the last five trading days. The single currency is trading at 1.0805 as President Trump’s healthcare bill faces strong opposition. The President has declared that if the bill is not approved on Friday he will leave Obamacare in place.

There were few economic indicators released this week in Europe and the United States. Unemployment claims in the U.S. came in higher than expected at 261,000 with core durable goods also missing forecasts with a 0.4 percent gain.

The Trump administration is proving to be one of the fastest to lose the post election momentum. When he was the president-elect Trump was able to get markets excited with the promise of pro-growth policies focused on tax stimulus and infrastructure spending. The Trump trade started to crumble when due to political reasons the first policies signed by President Trump were aimed at immigration, anti-trade and now healthcare reform facing tough opposition form the Democratic party and in the case of healthcare even from Republicans.

On Monday, March 27 the German Ifo Business Climate will be released at 4:00 am EDT. Confidence from German manufacturers, builders, wholesalers and retailers participate in the survey that has been improving slowly since September 2016. Consumer confidence in the U.S. will be released on Tuesday, March 28. The disconnect from strong consumer confidence and softer retail sales is expected to continue with the release of the Conference Board data. The Final GDP will be released on Thursday, March 30 at 8:30 am EDT. The third release on the fourth quarter gross domestic product for the United States.

XAU/USD gained 1.806 percent in the past five days. The price of gold is trading at $1,253 as political uncertainty surrounding the healthcare bill in the U.S. made the yellow metal increase its appeal as a safe haven. Gold rose against the USD as the greenback lost ground ahead of the healthcare bill in congress. Eventually the bill was pulled for lack of support and it raises questions marks about the future of Trump policies in particular fiscal stimulus and infrastructure.

Oil lost 2.498 percent in the least week. The price of West Texas is trading at 47.47 as the effects of the Organization of the Petroleum Exporting Countries (OPEC) production cut agreement are being offset by higher inventories in the U.S. as more shale producers are coming online. U.S. drillers added the most oil rigs since January.

There is a meeting in Kuwait this Sunday where OPEC and non-OPEC members will discuss the future of the production cut agreement and a possible extension. The weakness of the USD has kept the price of oil from falling further, but as doubts emerge around the next agreement and the impact producers that are not part of it could have as they ramp up production as prices are stable.

Source: marketpulse.com

lastest Articles

Market Analysis
Forex Week Ahead – The UK election is upon us
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY Technical Analysis: Bears challenge 50-DMA, ascending trend-line confluence support
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD sidelined around 1.1100 ahead of key US data
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Happy Friday for trade talks, GBP/USD holding onto Boris boost, all eyes on the NFP
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
OPEC+ said to discuss deeper oil cuts – RTRS
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold holds steady near $1475, weaker USD lends some support
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Kiwi lifted by RBNZ amid cautious optimism; eyes on OPEC+ meet, trade
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Asia: PMIs back in expansion territory – TDS
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD stays firm near 1.1100, looks to data
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
BoC Preview: Major Banks expecting BoC to hold fire today
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
US: Mixed manufacturing data – Deutsche Bank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold: Back in the red around $ 1460 amid USD comeback
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Trump's tariffs weigh on USD before meeting Boris, AUD surges, EUR rising
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Australia: Dwelling approvals weaken – Westpac
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
UK Industry: Brexit, weak global demand to hurt UK in 2020
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: China lifts mood, Boris and Merkel in trouble, critical data kicks off December
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Week Ahead - Market Awaits China Retaliation on Trade
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
BOJ’s Kuroda: Not thinking of further easing at present
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD looks for direction near 1.10 ahead of key data
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Soggy Black Friday mood, GBP/USD retreats, EZ inflation awaited
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
AUD/USD struggles near multi-week lows, just above mid-0.6700s
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
ECB’s Villeroy: Brexit uncertainty likely to last for at least some quarters in the future
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Sterling surges as poll backs Boris, dollar bulls thankful, Trump angers China
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
If Trump refuses to roll back tariffs, loss to American farmers could be permanent – Global Times
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD is offered near term – Commerzbank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Massive pre-holiday US data dump, Trump holding back deal, critical UK poll eyed
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
UK: Disorderly Brexit comes off the table – ABN AMRO
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD faces dual resistance lines, downside is easier – Confluence Detector
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Markets doubt US-Sino progress, Powell sees glass filling, GBP/USD spooked by poll
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD could still re-test the vicinity of 1.1100 – Commerzbank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Cheering China's olive branch to Trump, Boris extends lead, EUR/USD faces test
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Risk sentiment buoyed by trade optimism, focus on German IFO
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Markets remain fixated with the US-China Trade War and Brexit
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
JPY Futures: looks neutral/bullish near-term
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
ECB’s Lagarde: We face a global environment that is marked by uncertainty
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Breaking: EUR/USD jumps to 1.1085 as German Preliminary Manufacturing PMI surprises positively with 43.8
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD clings to gains near 1.1080 ahead of ECB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold flirting with session lows, around $1470 region
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Trump's trade deal in trouble, Boris bounces back, EUR/USD awaits ECB Minutes
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold Price News & Forecast: XAU/USD $1,475 continues to cap upside
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOMC minutes: Key event ahead
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: US Senate's HK bill weighs on sentiment, Corbyn crashing the pound, Fed minutes awaits
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY technical lines drawn as trade uncertainty persists – Confluence Detector
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
OPEC's share of Indian oil imports in October hits lowest since 2011 – Reuters
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Dollar depressed amid trade skepticism, Bitcoin battered, Johnson-Corbyn debate eyed
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
AUD/USD Technical Analysis: Upside is likely to remain capped near a support-turned-resistance
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
RBNZ likely to have two further cuts in May and August next year
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
BoE expected to remain on hold for the time being
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY moves back closer to multi-month tops, around 109.25-30 region
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
BoE to deliver a 25bps cut in January 2020 – Danske Bank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Tension toward Trump's trade comments, boost for Boris holds up, data eyed
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD clings to gains around 1.1020
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold recovers from 3-month lows, up little around $1465 level
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Trump's trade pessimism pressures markets, Spain stuck again, UK GDP set to rise
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Week Ahead - Trade war, UK, RBNZ, Banxico, Spain
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
RBA is not complacent about AUD remaining weak – Westpac
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
ECB Economic Bulletin: Moderate but positive growth in H2
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Company News
FXSniper PAMM - The New GEM at FXPIG
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold ticks higher, lacks follow-through
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD now risks a move to 1.1000 – UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Chinese tariff demands may break trade talks, USD marches forward, Fed speakers eyed
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
OPEC: Raises mid-term outlook for non-OPEC Oil supply growth
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD upside loses momentum
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Asia: PMIs pull back – TDS
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
ECB: Focus on Lagarde’s speech
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
BoE to leave the policy rate unchanged – Rabobank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Markets have reasons for a happy Monday, Boris Johnson remains in the lead, Lagarde eyed
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Week Ahead – RBA and BOE Decisions in focus as UK election campaigns begin
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD trims gains and recedes to 1.1150 ahead of NFP
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
The Fed moves into a ‘wait-and-see’ mode
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Dollar defeated ahead of Non-Farm Payrolls, Chinese data cheers markets
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD unchanged near 1.1170 post-EMU data
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOMC and BoJ meetings should have supported USD/JPY – Westpac
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Dollar depressed after the Fed, trade talks accelerate, and another busy data day awaits
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOMC Preview: What 11 major banks are expecting from October
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD could still visit the 1.1180 region
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Company News
Time to fall back
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Super Wednesday features the Fed, US GDP, and lots more as Brits brace for "jingle polls"
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Further upside in EUR/USD lost traction
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
BoC likely to leave the policy rate unchanged – Rabobank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Trump's trade hope lifts markets, Boris brings elections to parliament, Bitcoin bruised by Chinese warning
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Brexit, FOMC meeting amongst market movers this week – Danske Bank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold consolidates in a range, just above $1500 mark
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD Technical Analysis: recovery could extend to the 100-day SMA at 1.1128
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Week Ahead – Brexit, Fed, BoC, BoJ and Earnings
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Brexit: EU to extend Brexit deadline without a date - Reuters
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold climbs to fresh two-week tops, above $1505 level
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOMC: Still no pre-commitment to more easing
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
ECB meeting to be a relatively uneventful policy-wise
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Brexit in the EU's hands, EUR/USD may struggle with Draghi one last time, Bitcoin battered
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
ECB: Draghi’s last Governing Council meeting – Deutsche Bank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EU's Tusk: Will react to Brexit delay request in the coming days
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD: Steady trading – Commerzbank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Critical vote on Brexit, mixed messages on trade talks, Trudeau returned as Canadian PM
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD could test the 1.1200 region near term – UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Breaking: GBP/USD breaks above 1.30 as DUP rejects customs union amendment to the Brexit deal
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Boris and sterling brace for more Brexit drama, some stability in trade, and Canada votes
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Brexit Optimism Rises Despite Parliament Obstacle
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY upside could be losing momentum – UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD now looks to a test of 1.1165 – UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613