Forex Analysis for Wednesday 1st March 2017
Tuesday: US Prelim GDP q/q missed (1.9% vs 2.1%).
AUD GDP q/q exceeded expectations (1.1% vs 0.7%).
From ZeroHedge –
Tuesday US President Trump’s Joint Congress Address:
– US President Trump delivered a speech to Congress in which he stated he is to ask Congress for a USD 1tln infrastructure investment, which will be financed by both public and private capital.
– Trump stated they are working on historic tax reform so the US can compete and will reduce tax rate on US companies, adding that “it will take a big, big cut”.
– Trump commented that he will repeal and replace Obamacare and that he is to bring down the high price of drugs.
– Trump stated that they will soon begin construction of ‘Great wall’ on the southern border.
Note: US equity futures pared some gains during Trump’s speech although the price moves were relatively mild, while USD was pressured amid slight disappointment as the Congress address failed to provide any significant surprises or in-depth details. However, price moves were not sustained and on conclusion of the speech, USD resumed its strengthening trend.
Despite the markets being slightly disappointed at Trump’s lack of detail, the USD rose and global equities were buoyed by his comments. US 10 year treasury yields gapped up. The JPY played its part and weakened. The EUR had a small up day and the GBP dropped slightly as it looked like the UK Government were going to see their Article 50 bill amended by the Lords.
Later today: BOC Rate Statement and RBNZ Gov Wheeler speaks.
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