Reports of uncertain voting in the US Congress on the changes in Obamacare have led to an increase in risk aversion. As a result, we saw declines in stock markets and strengthened inter alia japanese yen. US dollar also lost due to uncertainty about the reform of the US healthcare system.
Meanwhile, President Trump said he was optimistic before voting and believes all Republican representatives will vote for changes in the health care system. Lack of agreement in this field could lead to long delays in implementation of tax reform and other laws aimed at stimulating economic growth. On the other hand, Bloomberg, citing a Republican, points out that the law currently does not have support in the House of Representatives. According to Congress calculations, the proposed changes will increase cost of insurance and increase number of people not covered by health system. The uncertainty associated with the reforms and the negative attitude after last week’s Fed meeting mean that the US dollar is under constant pressure from sellers.
At the other extreme was British pound. On Monday it was the weakest currency on the market, and the confirmation of the date of launching Article 50 of the Lisbon Treaty led to a considerable GBP devaluation. However yesterday’s session brought a publication of inflation from the British economy, which significantly exceeded expectations of the market. What is more, the pace of price growth is significantly above the Bank of England’s target, which could force MPC members to tighten their monetary policy. This would be a positive signal for the pound, and therefore from Monday afternoon the British currency was up nearly 5 cents against the polish zloty (PLN).
As far as concerning PLN , until yesterday afternoon everything was running positive. The worsening of sentiment on the global markets has led to give back some of the recent gains, and the prolongation of correction on the exchanges could mean further weakening of the zloty. At 9:30 the dollar cost 3.9634 zł and the euro 4.2805 zł.
Take part in the biggest investment congress in Central and Eastern Europe and now register for FxCuffs 2017 free of charge. See you in Krakow, March 24-25!