The main currency pair is moving without any particular direction on Tuesday; the market is waiting for Trump’s speech.
On Tuesday afternoon, the EUR/USD pair is barely moving. The current quote for the instrument is 1.0590. the daily low was at 1.0571, the high – at 1.0607. The volatility right now is low, but it could increase towards the evening.
Today, investors are waiting for Donald Trump’s speech in the Congress. The intrigue is that Trump may bring up the topic of the budget and the taxation reforms. Trump spoke about his intentions to reform the country’s taxation system during his campaign, but a couple of weeks ago he said that he would provide more details of his strategy in late February or early March. Nothing is known about the strategy except the things that were said earlier: possibly, the president might talk about decreasing the taxation burden for large companies and facilities on certain conditions.
As for the budget, the situation is also quite interesting. The other day, it was announced about Wilbur Ross’s assignment to the position of the Secretary of Commerce. Before that, Steven Mnuchin was assigned to the position of the Secretary of the Treasury. Trump, who knows perfectly well how to make money work, is gathering active financial experts around him. He seems to have a plan how to attract money after March 15th, once the mass media hasn’t started to cry foul over a new “cap” of the country’s national debt.
Mr. Ross is known as the "King of Bankruptcy” for buying bankrupt companies. Mr. Mnuchin is well-known on Wall Street as an ambitious investor and one of the former top managers of Goldman Sachs.
In the light of the above, the market is in no hurry to risk. “Chesspieces” are in their places, but the most important battle is still ahead.
RoboForex Analytical Department