We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • #Gold prices may fall while the US Dollar gains even as economic policies championed by the Trump administration invite inflation. Get your $gld markets news from @IlyaSpivak here:https://t.co/4lHhHsby56 https://t.co/zF4EyLIRWM
  • Lessons from Bretton Woods are forgotten, the US-China #tradewar represents a true existential threat to the post-World War II international trade order, and in turn, the globalized economy that has grown out of the ashes of history. More from @CVecchioFX :https://t.co/paaBxX6Xt0 https://t.co/tcjkQnaBWl
  • What are the truths and myths of #forex trading? Find out from @DailyFX analysts here: https://t.co/uF75VPzstr #FOMOintrading https://t.co/bDXG2dV3wG
  • The US Dollar technical outlook against the Euro, British Pound, Australian Dollar and New Zealand Dollar are discussed. Large wicks left signs of indecision, will reversals follow? $EURUSD $GBPUSD $AUDUSD $NZDUSD - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/12/15/US-Dollar-Technical-Outlook-EURUSD-GBPUSD-AUDUSD-NZDUSD.html?CHID=9&QPID=917702 https://t.co/dpuIppxo3F
  • What are some trading mistakes @nickcawley1 made during his career and what did he learn from them? Find out: https://t.co/y3cckNW22W https://t.co/vUQyVl6b0e
  • Growth linked currencies have gained as investors hope for progress on the trade front as well as stimulus from the Fed. The global economy however remains depressed and seems likely to remain so. Get your market update from @DavidCottleFX here: https://t.co/jt1HH9AHLM https://t.co/Yz65AMJYlm
  • RT @YuanTalks: #China temporarily suspend additional tariffs of either 10% or 5% on some #US goods scheduled to take effect on Dec 15, said…
  • The gold-silver ratio is simple. It is the number of silver ounces you would need to trade to receive one ounce of #gold at current market prices. Find out how you can use this in your trading strategy here:https://t.co/kh5DZvv5ib $XAUUSD https://t.co/eJGODpfTNc
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 https://t.co/DoVBd1l1oO
  • #Silver is a precious metal commodity that investors use as an inflation hedge and safe-haven asset. Find out what are some strategies and tips to trade silver here: https://t.co/k4tVcFuwxW #CommoditieswithDailyFX https://t.co/zXCSmH2HLX
US Dollar at the Mercy of Washington on Healthcare Bill Vote

US Dollar at the Mercy of Washington on Healthcare Bill Vote

2017-03-24 07:32:00
Ilya Spivak, Sr. Currency Strategist
Share:

Talking Points:

  • US Dollar at the mercy of Washington, DC on healthcare bill vote
  • Yen down as Asian stocks advance, NZ Dollar sunk by trade data
  • Euro unlikely to find lasting direction cues in flash PMI surveys

The US Dollar roared higher in Asian trade, gaining ground on all of its G10 FX counterparts. Prices advanced alongside front-end Treasury bond yields, pointing to firming Fed policy bets as the source of the greenback’s newfound strength.

The US unit has been on the defensive since last week’s FOMC rate decision delivered a widely expected hike but offered nothing to bolster the case for a steepening rate hike path thereafter (as suspected). Today’s change of direction appears linked to a looming vote on a health care bill meant to replace so-called “Obamacare”.

US President Donald Trump laid down the gauntlet to members of his own Republican party. He threatened to abandon health care and move on to tax reform if they do not pass the American Health Care Act (AHCA) championed by Speaker Paul Ryan in a House of Representatives vote on Friday.

The AHCA has met with resistance from the right and moderate wings of the Republicans. Needless to say, the opposition Democrats are also not on board. Loud wrangling over its contents has turned its passage into a referendum on the Trump administration’s ability to get legislation through Congress.

Trump’s campaign promise of deregulation, corporate tax cuts and generous infrastructure spending stoked growth and inflation bets, sending USD higher alongside stock prices and birthing the “Trump trade”. Those moves may reverse if the failure of the AHCA suggests that the White House is unable to execute.

Within this context, the Dollar’s Asia-session gains probably reflect precautionary unwinding of short exposure rather than confidence in the passage of health care reform. The currency slid to a two-month low this week and traders probably felt over-extended ahead of such potent event risk.

The Yen and the New Zealand Dollar bore the brunt of losses. A rebound across Asian stock exchanges compounded pressure on the perennially anti-risk Japanese unit. Meanwhile, the Kiwi was battered after data showed that the trade deficit unexpectedly widened to the largest in almost eight years in February.

The March set of flash Eurozone PMIs headlines the calendar in European hours. The region-wide composite index is forecast to show a slowdown in manufacturing- and service-sector growth. That may mean little for the Euro however considering its limited implications for near-term ECB monetary policy.

Where will the markets go in the coming days? Sign up for a weekly outlook webinar to discuss it!

Asia Session

US Dollar at the Mercy of Washington on Healthcare Bill Vote

European Session

US Dollar at the Mercy of Washington on Healthcare Bill Vote

** All times listed in GMT. See the full DailyFX economic calendar here.

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.