The US Dollar was able to gain some traction against the Japanese Yen and pulled away from the recently struck 2 ½ week trough but remains under pressure generally ahead of President Trump’s policy address before the US Congress tomorrow. Analysts believe that this will finally shed some light on Trump’s economic plans, especially as it relates to tax reform and infrastructure spending. What is of major concern is whether or not Trump will provide specific details and timelines. If his plans seem too vague or without an execution plan, it could likely weigh on the greenback.
As reported at 10:08 am (GMT) in London, the USD/JPY was trading at 112.215 Yen, a gain of 0.07%; the pair earlier hit a peak of 112.9500 Yen in today’s trading session. The EUR/USD was up 0.34% to trade at $1.0589; the pair’s trading range for the day is currently set at $1.0571 for the low and $1.0603 for the high. The GBP/USD was down 0.24% to trade at $1.2433, off the daily low set at $1.2536.
Euro Trade Wary Ahead of French Election
In Europe, the likelihood that France’s far-right presidential challenger, Marine Le Pen, might win the Presidential election is putting pressure on the common currency. The latest polls show that Le Pen is coming in behind the other candidates, Emmanuel Macron and Francois Fillon, but investors are very wary of a surprise given the outcomes of both the Brexit vote and the US presidential election. One currency strategist said that people no longer trust the polls, given the foregoing.