Republicans are likely to settle for repealing Obamacare but without any replacement. The imminent failure of Trumpcare comes on fertile ground: from another political issue related to Trump Junior, through weak US data and the more-cautious central bank.
The move that began in the Asian session is extended in the European session. Here are some updates. And how far will it go? Politics will likely dominate.
- EUR/USD: The pair had trouble to break higher but now it is trading at the highest level in 14 months, reaching a high of 1.1560. The next resistance is 1.1620.
- USD/JPY is down to 112.20. Dollar/yen is falling since it lost the all-important uptrend support line.
- GBP/USD was hit by weak UK inflation data but bounces back on the USD weakness.
- AUD/USD got its own boost from the hawkish meeting minutes by the RBA and extends its gains to 0.7940, 100 pips over the double-top.
- USD/CAD is extending its falls towards 1.26, ending its consolidation after the big BOC-triggered falls last week.
Will it continue?
We do not have critical US indicators today, leaving room for further political ramifications. More news about the health care bill, tweets from Trump about it and perhaps surprising new revelations about the Russia affair could impact the US dollar.
Tomorrow we get US housing data and on Thursday we have jobless claims and the Philly Fed Manufacturing Index. The Fed convenes next week and is now in a “quiet period”.Get the 5 most predictable currency pairs