For several weeks we watched the strengthening of the reserve currency. At the moment we see a slowdown in its growth rates, to which many factors contribute.
In connection with the recent missile tests of North Korea, then the many verbal exchanges between the United States and the DPRK, we observed the reaction of the markets. The Pentagon reacted and decided to reallocate $400 million to missile defense.
Furthermore, recent statements by US President Donald Trump about the new tax reform have raised investor interest and strengthened confidence in the dollar, but as with his healthcare reform, not everything is as smooth. In addition to some economic factors, the tax plan also caused disagreements among the Republican Party, therefore it is not worth counting on a quick enactment of the reform.
Of the expected events affecting our trading today, we should pay attention to the outputs of the business activity indices as well as the statements of the ECB President Mario Draghi at 20.15 (GMT +3) and the Fed Chairman Jannet Jellen at 22.15 (GMT +3).
For more information about the events for today, see the economic calendar.
