Considering the political kerfuffle in Washington last Friday the dollar had a reasonably successful week, sharing second place with the pound behind the Canadian and Australian dollars. It strengthened by a cent against the euro and added two thirds of a Japanese yen.
At the end of last week the administration withdrew Donald Trump’s Healthcare Bill because it looked likely that it would be defeated in the House of Representatives. The feeling at the time was that if Congress was in a mood to fight the president it would prejudice the passage of upcoming legislation for tax cuts, financial deregulation and infrastructure spending, the prospect of which had made the dollar so popular at the end of last year.
Yet on Monday investors put that behind them. They were more interested in the upbeat US consumer confidence data and the string of Fed bosses opining on whether there would be two three or four rate increase in total this year.