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Devata Tseng

USD Hits Lowest Level Since November on Trump’s Healthcare Failure

The dollar index slumped to a 4-and-a-half-month low of 98.85 this morning during the European session, US equities also fell, as markets have lost confidence in Trump’s administration to fulfil his promises. Trump’s first bill proposal since taking office, to repeal Obamacare and replace it with the American Health Care Act, failed on Friday March 24. This is his second failure following the refugee and immigration travel ban. Not surprisingly President Trump blamed the Democrats for the ...

Devata Tseng

Healthcare Vote Postponed Due To Republican Disagreement

The vote on President Trump’s first bill proposal since taking office, to repeal Obamacare and replace it with the American Health Care Act, was postponed abruptly from Thursday evening to Friday March 24, due to severe disagreements within the Republican party. President Trump and Republican leaders have been attempting to convince more Republicans to support the new bill. However, it seems to be difficult to reverse the situation in a short time period. Trump stated that if the bill fails to ...

Devata Tseng

USD Hovers Around Support Levels Ahead of Yellen’s Speech and Health Care Bill

Today the US Congress will vote on whether to repeal Obamacare, which is President Trump’s first bill proposal since taking office. President Trump has warned Republicans that, if the healthcare reform bill fails to pass, they will lose their seats. However, if the new healthcare bill passes, that means many Americans pay a much higher amount of money on medical spending. For the markets the concern is, that if the bill fails to pass, President Trump’s other policies, such as tax-cuts and ...

Devata Tseng

Dollar Tumbles on Trump Uncertainty and Position Closing

USD plunged on Tuesday, the dollar index breaking the significant support line at 100.00 and further testing the next major support at 99.50. The downtrend was held temporarily above that level. Last week the dollar index fell by 1.3%, marking the worst weekly performance in the past 8 months. Regardless of the rebound in February, the dollar index has retraced approximately 2.1% since the beginning of this year because of profit-taking pressure post the US presidential election surge. ...

Devata Tseng

Brexit to be Triggered on March 29

The date to officially start the Brexit procedure was finally confirmed yesterday. UK Prime Minister, Theresa May, will trigger Article 50 of the Lisbon treaty on Wednesday March 29, starting the 2-year Brexit negotiation process with the EU. The timetable is in line with her plan to begin “divorce proceedings” by the end of March. Theresa May will formally notify the EU Council President, Donald Tusk, with a letter next Wednesday. Tusk is expected to present draft Brexit guidelines to the ...

Devata Tseng

Sterling Hits 3-week High Against Dollar

GBP saw its third consecutive session of gains last Friday because of an MPC (Monetary Policy Committee) member, Kristin Forbes, voting to raise rates this month despite Brexit uncertainty and risks to the economy. However, from a broader scope, the uncertainty associated with the Brexit procedure, until the final Brexit deal is done, and the turmoil over a second Scottish referendum, is likely to pose downside risks on the UK economy and GBP. The UK parliament finally passed the Brexit Bill on ...

Devata Tseng

USD remains weak ahead of G20 Financial Meeting

Friday March 17th sees the start of a 2-day meeting of the world’s top finance ministers in Germany. The fear among G20 members is the continuing US protectionism, though the recent elections in the Netherlands have indeed provided some optimism that Europe is moving towards more liberal policies. Chancellor Merkel will be meeting with President Trump today with the hope that the G20 Nations can get support for free trade and avoid getting into any trade wars with the United States. This point ...

Devata Tseng

Dollar Retreats Post FOMC Due to Profit-Taking

The Fed announced a rate hike by 25 basis points yesterday, with rates in a range of 0.75% to 1%, in line with market expectations. Fed Chair Yellen stated that It is appropriate to gradually remove accommodation, as the US economy is going well. Gradual rate hikes will be appropriate over the next few years, to sustain the economic expansion. Based on the economic projection made in December the medium economic projection is, essentially, unchanged. The medium projection for the federal funds ...

Devata Tseng

March Fed Meeting Is Coming, Will Yellen Give a More Hawkish Outlook ?

The Fed will announce its interest rate decision and monetary policies, at 18:00 GMT today. The FOMC press conference follow at 18:30 GMT. Markets have been expecting a March rate hike for a long time, the expectations have been largely priced in since February. Therefore, even if the Fed Chair Yellen announces a rate hike today, it would be in line with market expectations. The Fed will likely raise rates by 25 basis points this time, with rates in a range of 0.75% to 1%, which is the third ...