- U.S. President Trump says he will try again with healthcare reform
- Trump: Will involve Democrats to reach compromise on healthcare bill
- ECB official Weidmann: Time to discuss exiting expansionary monetary policy
- Trump administration looking to sign tax reform bill by August
- FOMC member Evans: Watching the dollar’s impact on inflation
Dollar bulls are getting their hopes up again for fiscal stimulus and tax reform after the Donald mentioned that he is looking to take another shot at healthcare reform by reaching a compromise with the Democrats.
What’s next for the healthcare bill? – Capping off the political drama that ensued in Congress over the past few days, U.S. President Trump assured that the administration won’t give up on pursuing healthcare reform and that they’re willing to reach over to the other side to involve Democrats in reaching a compromise.
As my buddy Forex Gump discussed, the failure to come up with the means to trim the government deficit leaves the Trump administration short on funds to support its reform plans. This puts the much-awaited tax reform at risk, along with their plans to boost spending for infrastructure and defense. This is perhaps why the Donald is taking the high road and admitting that the GOP needs to meet the Democrats halfway in order to pass a new healthcare bill.
White House talks tax reform – With markets turning lower after the crushing healthcare bill defeat, forex junkies have been on the lookout for some form of reassurance that Trump’s tax reform agenda will still push through.
According to White House spokesman Sean Spicer in a briefing, they will move ahead with tax reform because the President believes that this is a huge priority and is something that he feels strongly about. He even mentioned that they’re looking at August as their target date for getting tax legislation on the table, although there is still some doubt that this time line can be maintained in light of recent developments.
U.S. equities were still mostly lower for the day, except for the Nasdaq which ticked 11.64 points up to 5,840.37 (+0.20%). The S&P 500 was down 2.39 points (-0.10%) while the Dow 30 index closed 45.74 points down (-0.22%).
Major Market Movers:
USD – The Greenback made a bit of a comeback on talks of taking another shot at the healthcare bill and gunning for tax reform by August.
USD/JPY bounced off a low of 110.11 to a high of 110.83, EUR/USD retreated from a high of 1.0906 to 1.0856, GBP/USD popped up to 1.2616 then pulled back to 1.2561, and AUD/USD is down from .7637 to a low of .7608.
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
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