Breaking News
0

Dollar Subdued as Investors Mull Budget, Infrastructure Plan

ForexFeb 12, 2018 12:22PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Investing.com – The dollar traded roughly unchanged against a basket of major currencies as investors mulled over Monday’s release of the Budget and Infrastructure Plan from the White House.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.07% to 90.16.

The infrastructure plan is widely believed to be dollar positive as it is seen as inflationary and expected to provide a fiscal lift to the US economy.

The infrastructure plan aims to spur $1.5 trillion in new investment by upgrading roads, airports and other public works. The plan also calls for $50 billion to be invested in broadband, roads, power, and water projects.

The plan, however, is expected to meet resistance from both sides of the Congressional aisle as Republicans are wary of another big spending measure– after a $300 billion budget deal was signed last week – while the Democrats claim the plan falls short of expectations concerning Federal funding.

The budget plan, meanwhile, forecasts the deficit for fiscal year 2019 to be $984 billion, an increase from the previously projected $526 billion.

The dollar, however, remained roughly unchanged as the pound and euro recovered from session lows.

GBP/USD was flat at $1.3822 after the Bank of England’s Vlieghe said Monday a stronger world economy and labour market tightness points to further rate increases, stoking investor expectations that the central bank would tighten monetary policy sooner rather than later.

EUR/USD rose 0.17% to $1.2271, while USD/JPY fell 0.01% to Y108.76, as investors await Japan fourth quarter GDP data.

USD/CAD rose 0.22% to C$1.2608 as oil prices rebounded limiting losses in the loonie.

Dollar Subdued as Investors Mull Budget, Infrastructure Plan
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email