This afternoon we got to know the Republican Party’s plan to reform the health insurance system. The change was adopted by the House of Representatives at the end of April and the new law was drafted for a vote in the Senate.
Signing this bill is very important, without spending cuts in the health insurance system, tax cuts or an increase in investment in infrastructure would be unlikely. This could be a positive signal, but we will have to wait for the Senators’ comments now to assess whether the bill has the chance to pass. If the Trumpcare implementation process would run fairly smoothly, then the probability of adopting the tax code reform would be increased by the end of this year.
Reaction on dollat was slightly positive at first but it definitely was not a groundbreaking move. Looking at the EURUSD through the H1 interval, the pair moves in the downward channel that leads to 1.1141 level.
EURUSD is moving in the short term downward channel that leads to 1.1141 level. Source: xStation5
Reports from Washington have been positively received by Wall Street. The publication of the Health Insurance Reform Project’s release has allowed the New York indexes to come to a positive territory. Progress on the work in Congress may hope for faster implementation of tax reform which is supposed to reduce the effective tax rate for Wall Street companies to 20 percent. The S&P500 (US500 on xStation5) has rebounded from the 21-period moving average. If mood improvements continue, the goal for buyers should be to re-test the recent peaks in the area of 2,450 pts.
The S&P500 has rebounded from the 21-period moving average and the goal for buyers should be to re-test the recent peaks in the area of 2,450 pts.