Trump Announces No Tax Changes

Today’s speech from Donald Trump may not be such a big event after he proclaimed that there will not be any change in tax prices until another scheme replaces Obama care. Trump added that the budget will be focused on ensuring public safety to the citizens of America along with a surge in security spending. The Federal Open Market Committee’s voting member Kaplan’s speech stressed on increasing the hike rates sooner. Kaplan added that a frequent increase in hike rates would keep the monetary policy in check.

The headlines posted a stronger than expected value with 1.8% gain versus the 1.6% consensus and the core reading showing a 0.2% drop instead of the forecasted 0.5% . We begin the day on a positive note with France’s data looking better and the Consumer Price Index boosting the data. The Swiss data should also be closely watched out for as it shows improvement with the KOF Swiss Leading Indicator.

However, the U.S Data shows mixed results for the week and looks to continue with the same response under Gross Domestic Product Price Index and Personal Consumption Expenditures Prices. From the market movements, we can see that the trade balance posted a previous month negative rate at $65B. Any further upsurge further will hamper the growth of Greenback. The Chicago Purchasing Managers’ Index data are better on reports when compared to Chicago Purchasing Managers’ Index which is kind of stuck and pulling the dollars down.  Hence, we see a mixed response with no strong support for the US dollar.
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