020 7898 0500Republican healthcare plans are being debated and are seen as an indicator of Donald Trump’s ability to legislate in Congress, and, ultimately, his ability to deliver on tax and spending promises.
Much of the recent dollar strength has been based around Trump’s election victory last year and the promises he made during the election campaign. Markets have priced in expectations that tax changes would see billions repatriated to the US, which would allow the White House to spend more, boosting growth, inflation and interest rates.
The markets’ faith has been steadily evaporating since the turn of the year, and a defeat in the healthcare discussions would be another paragraph in this chapter, putting the US dollar under further scrutiny. This week US stocks have already seen the worst week since Trump’s election.
Federal Open Market Committee member Evans will speak later today. We also have core durable goods data out at lunchtime. However, the markets’ focus will remain on interest rate hikes in the US this year.
