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.