Dollar today inched higher with U.S dollar index up 0.15%, changing the course after an overrated negative reaction to the failure on Friday of President Donald Trump’s health bill. The failure to gain need majority sparked the prospects for the rest of his agenda and his reflationary economic policies. Overnight media reports also shows that president Trump has indicated to prioritize the fiscal spending at a dinner with senators. Donald Trump’s fiscal spending/stimulus could raise the anticipation of rate hike in future which would support the U.S dollar.
Euro is down in later today after Reuters report that investors over interpreted the hawkish comments made by the European central bank conference, quoting ECB sources. Euro rose after March 9 when European central bank president Mario Draghi commented that it is highly like for further simulative measures like further interest rate cuts, and expansion of bond buying programs,
Sterling pound also rises after the UK formally begins the process of leaving the European Union after Therasa May signs the article 50. Therasa May after triggering article 50 says she wants the country to be prosperous, secure and tolerant outside of the European Union. She also added UK would do everything to help the European Union to prosper and succeed. She also highlighted the need to secure a free trade deal with EU. GBP pairs are likely to be more volatile as market participants are waiting for the response from European Union.