The Pound Sterling surged to a 7-week peak versus the US Dollar, gaining nearly 1% after President Trump’s healthcare bill was withdrawn from Congress. Speaker of the House Paul Ryan blamed the bill’s failure on Democrats primarily, but a handful of Republicans also intended to vote no to the bill which would have resulted in some 24 million individuals losing insurance coverage in the United States. As a result, major currencies are taking advantage of the Dollar’s weakness, with nearly all edging higher.
As reported at 10:50 am (BST) in London, the GBP/USD was trading at $1.2584, a gain of 0.94% and establishing a new session peak; earlier, the pair had hit a low of $1.2477. The EUR/USD was also higher at $1.0868, a gain of 0.61%; the pair’s low was set at $1.0874 while the peak was at $1.0795. The USD/JPY was down 0.92% to trade at 110.298 Yen, striking a new low for the session.
Trump’s Future Plans Questioned
Though the Trump administration had initially set healthcare aside saying “Obamacare was the law of the land,” they’ve since reverted and have promised to address the issue in the future. Pundits say that the next task on their agenda is likely tax reform, though now that they have endured this stunning loss, the question is what kind of a battle will they see in the US Congress. Analysts say that this loss is clearly a setback, legislatively, for the Trump presidency and brings into question his plans for trade. Trump’s clearly protectionist leanings have worried global markets and analysts alike.