When is Trump's joint session of Congress?

Trump speech to Congress Overview

The US President Donald Trump will address Congress today and give a speech with details of his economic plans. What markets are looking for is conviction and a more conciliatory tone. There will be a live stream at 1pm Sydney time, 11 am in Tokyo, 2am GMT,  and 9pm EST. The market is eagerly awaiting specific details on the fiscal plans and their timing to be closely scrutinised. However, there are real concerns that Trump may not be able to communicate through the complicated workings of the US economy and if his delivery is too vague markets will be disappointed again, jeopardising the Trump reflation trade once again. The address will take place in the House of Representatives and the specifics that markets are looking for from the Republican president are concise and language of his aims to make good on promises to tackle tax reform, boost infrastructure spending and simplify regulations he said that have been are harming business under the Obama administration. 

How could it affect the dollar?

The U.S. dollar index (DXY) is a measure of the value of the U.S. dollar relative to the value of a basket of currencies of the majority of the U.S.'s most significant trading partners. The DXY has risen and fallen sharply throughout its history, reaching its high point in February 1985 with a value of 164.72 and its low point in March 2008 with a value of 70.70. Today, the dollar has been elevated with expectations of Trump "revving up" the US economy in 2017 with increased fiscal spending with an increase of inflation that the Fed would need to raise interest rates incrementally to keep ahead of the curve. 

DXY rallied from 96.00 area when Trump won the elections to a high of 103.82 where the dollar lost traction down to 99.24 recent lows before recovering back to above the psychological 100 mark and the current spot at 101.34. Should Trump disappoint markets, the dollar could take a big hit and we could be quickly looking at the 100 psychological and milestone level again. However, should markets digest the address as positive for the US economy, the reflation trade is back on, yields will be higher and the dollar stronger targeting previous Trump fuelled aforementioned highs.

Key notes

• Policy details and tone will be key in Trump speech to Congress - Reuters
•   White House: Immigration will be mentioned in Trump's address to Congress
• Fed's Williams: Rate increase up for 'serious consideration' at Fed's March meeting
• China, US affirmed importance of "constructive bilateral relationship" - State Dept
• DXY inter-markets: not so ‘phenomenal’
• US: Tax reform scope matters more than timing – RBC CM

About Trump's address to a joint session of Congress

President Donald Trump will address a joint session of Congress on Tuesday, February 28 at 9 p.m. ET/2GMT.