The replacement to Obamacare continues to dominate headlines in the States. After the failed Republican move to repeal and replace Obamacare, the next threat to the previous administration’s flagship piece of legislation could come before the weekend. The White House have still not confirmed that the government will pay the monthly subsidy that helps low-income citizens access health care. The number of insurers pulling back from the plan is increasing as the politics surrounding it continues to scare the US.
On the data front, US building permits were released yesterday afternoon. After the large drop in May, building permits rebounded in June, the most since November 2015. Building permits in the States exceeded economists’ consensus, registering a 1.25m, whilst Housing starts followed suit with a better than expected 1.22m. The bullish construction data boosted the Greenback early yesterday afternoon.
It’s ECB day today and markets are buckling up for a volatile day for the Euro. Although the interest rate decision is a foregone conclusion (expected to be no change), attention turns to commentary surrounding the ECB’s stimulus plan. EUR/USD is currently trading at one year highs as Euro bulls expect tapering by the ECB sometime this year. Any comments that either solidify or hinder these plans will cause aggressive movement in the currency pair.