The trading on Wall Street stock exchanges will open today after last week the index posted the worst week since the Nov. 8, following the cancellation of Trump’s new health law at the US House of Representatives, which surprised investors with fears that Trump would have trouble to pass ambitious reforms in his Congress.
On a weekly summery, the Dow Jones Industrial Average fell by 1.5%, the S&P 500 shed 1.4% and the NASDAQ lost 1.2%.
Since the election in the US, the S&P 500 index gained 12%, mainly due to speculation that the Trump government would lowering taxes and would give incentives that will accelerate economic growth and corporate profits.
Now, the focus among Republicans is moving to a tax reform that, according to Trump’s election promises, includes a reduction in corporate tax to 15 percent.
The attention of investors will be directed this week to Britain, where Prime Minister Theresa May is expected to announce on Wednesday the implementation of Article 50 of the Lisbon Treaty, which will open a two-year process which at the end the country will separate from the European Union.
On the macroeconomic front, the US consumer confidence and economic confidence in the Euro zone will be published,
Also to be published on Wednesday, the third and final assessment of US growth in the fourth quarter.
The main trend of the pair on 4 hours chart is a clear rising trend.
At the moment the pair stands at a price level of 1.0863, there may be a correction as part of the trend, but the tendency is that the pair would reached the target of 1.0970.