Urhobo Voice
Nigeria NewsLatest Nigeria News Update!

Donald Trump Rally To Be Tested By Healthcare Vote

Donald Trump

A growing sense of caution has gripped the forex markets this week with investors on standby ahead of Thursday’s key healthcare vote in Congress which may thoroughly test the Donald Trump bump.

Uncertainty over Donald Trump proposed economy agenda has already triggered risk aversion and any complications in the healthcare reform could spell trouble for this phenomenal stock market rally.

Global forex markets stocks may be exposed to downside shocks with the threat of a potential setback in the healthcare bill raising doubts over Donald Trump ability to move forward with the proposed tax cuts and infrastructure spending.

Today will be the first major test for Donald Trump’s legislative ability and the outcome may either create a Trump slump or technical bounce for bulls to exploit.

The sterling hovering around 1.2500

Sterling has staged a remarkable rebound this week with bulls almost rebelling against the Brexit woes by propelling the GBPUSD above 1.2500 during Thursday’s trading session.

While the Dollar’s persistent weakness combined with February’s blockbuster retail sales figure of 1.4% may have created an illusion of a bullish bias returning to Sterling. Although the retail sales figure for February was unquestionably impressive and illustrated strong growth, the underlying three-month view from December and January still displayed a slowdown.

With the Article 50 set to be triggered next week and the focus redirected towards Brexit, Sterling could be instore for a messy rollercoaster ride. The lingering concerns over complications arising in the negotiation process may compound to the jitters consequently exposing Sterling to downside risks.

While bulls may be commended on their ability to exploit Dollar’s weakness and elevate Sterling repeatedly despite the Brexit anxieties, questions may be asked over how much steam the over-extended technical bounce has left.

With uncertainty still the name of the game when dealing with Sterling, there remains a likelihood of the Brexit developments dictating where the currency trades with macro fundamentals becoming secondary.

From a technical standpoint, Sterling bulls may win the battle this week if 1.2500 is conquered. A decisive breakout and daily close above 1.2500 could open a path towards 1.2600. On the other hand, if 1.2500 remains defensive then bears have a chance to test Wednesday’s daily low at 1.2420.


Rev Francis Waive

Add a Comment

Your email address will not be published.

Comment moderation is enabled. Your comment may take some time to appear.