US Dollar Weak as Trump Fails to Repeal Obamacare

The US dollar was broadly weak during Monday’s trading session after US President Donald Trump suffered a major defeat on Friday, failing to dismantle the Obamacare. The greenback was trading near the lowest level since November against such currencies like the euro and the Swiss franc.

House Speaker Paul Ryan pulled the bill to repeal the Patient Protection and Affordable Care Act before voting could even start, meaning that Trump failed to deliver on one of his main election promises. Markets did not welcome the news, considering it a sign that the President will have troubles with fulfilling his other promises, like tax reductions and higher infrastructure spending. Considering that hopes for the reforms were among the major factors supporting dollar’s strength, it is not a surprise to see the US currency soft after such hopes were trashed.

EUR/USD rallied from 1.0837 to 1.0867 as of 8:24 GMT today. USD/CHF dropped from 0.9885 to 0.9849.

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