The dollar slid to a near two-month low against a basket of currencies early on Monday as concerns mounted about the chances of U.S. fiscal stimulus after the stinging defeat of President Donald Trump’s healthcare package. Traders said the market was divided on what the failure of Trump’s healthcare bill meant for the outlook for U.S. tax cuts and infrastructure spending. EUR/USD rose 0.22% to 1.0807, off a three-day low of 1.0761 hit earlier in the session.
Prime Minister Theresa May will set out how her government plans to restore sovereignty over Britain’s laws on Thursday, publishing a detailed paper on ending “the supremacy of EU lawmakers,” according to Reuters. GBP/USD traded at 1.2520, up 0.38%.
The dollar index against a basket of major currencies was
down 0.3 percent at 99.299 after going as low as 99.292,
its lowest since Feb. 2.
Gold rose over 1% to touch a one-month high on Monday as the dollar slid after President Donald Trump’s failure to pass healthcare reform raised doubts over his ability to push through his economic agenda. Spot gold rose 1 per cent to $1,256.20 per ounce by 0401 GMT, after hitting $1,257.97, its highest since February 28.
US Oil remained in red last week after recovery attempts were capped under psychological $50 per barrel resistance, as hopes that output cut agreed between OPEC and non-OPEC oil producers was offset by persistently high crude inventories. Oil producers agreed to curb production by 1.8 million barrels per day, from Jan 1 for six months, in order to drain record stockpiles, but inventories remain high.
Spot silver rose 0.6% to $17.85 an ounce, after hitting a near 3-week high of $17.88. Platinum rose 0.8 per cent to $968.74, while palladium was firm at $809.30. It touched an over 2-week peak of $815.40, its best since March 10, 2015.