The past couple of days have given investor confidence reasons to look optimistic for the future of American politics, despite the announcement of record-breaking 22 trillion budget deficit. President Donald Trump has stepped down on his robust stance on border wall security, giving investors reasons to believe that his administration might agree to negotiate a deal with the Democrats on Defence budget.
Trump maintains his desire of building the wall at the border with Mexico, despite him having to surrender his initial plan of getting a 5.7 billion USD budget for its construction. The market reacted positively to the news of cooperation in the US Senate with all major indexes` futures gaining in the trading session today, with the Dow Jones 1 month gaining 145 basis points and the S&P 500, as well as the Nasdaq, gaining respectively 12.75 and 29.75 basis points.
The general shift in presidential rhetoric has moved from a strident self-serving focus to willingness to cooperate, both on the domestic and the international arena. Furthermore, Trump has announced that he would like to meet up with China's president Xi Jinping to discuss a potential resolution to the trade war between the two countries.
The dollar has gained strength against all of the other major currencies and it is more than likely to extend its gains in tomorrow's session, especially if the Euro area reports less than expected GDP growth, further throwing the EURUSD in negative territory.