The U.S. dollar came under selling pressure on Monday. Foreign currencies were strongly higher with the Euro currency the strongest. Stock indices also saw considerable selling pressure in early trading but closed only moderately lower; bonds were higher.
Selling of U.S. assets was tied to investor worries that the new administration had been weakened by the failure to pass a repeal and replace bill on Obamacare last Friday. The worry comes from fears that tax and regulatory reform plans that the administration has may not come as soon as expected. There are some who think that the agenda will be side-tracked by foes of the administration.
Only time will tell if all of the fears of traders and investors will be borne out. However, it is wise to remember the axiom “bookies don’t pay off at half-time”. The new administration has only begun.