DXY below 89.10 as Trump delivers State of the Union Address

• US Dollar index extends session declines from 89.32 following Trump comments.
• Trump wants 1.5 trillion dollars for new infrastructure projects.

The US Dollar Spot Index is still flat into the overnight session around 89.10 as President Donald Trump delivers his State of the Union Address, highlighting the need for reciprocal trade agreements and reiterating his commitment to  renegotiating 'bad deals'.

The Dollar Index has struggled in the first year of Donald Trump's presidency, falling from a high of 103.75 back in December of 2016 following Trump's election, and is currently trading into four year lows. Trump's many public speaking engagements usually focus on equities and employment figures, only directly addressing the US Dollar once, in an attempt to walk back allegedly unintentional USD-bearish comments from Treasury of the Secretary Steven Mnuchin recently.

Donald Trump also called on Congress during his address to produce a bill that introduces 1.5 trillion dollars in new infrastructure spending, and to also streamline the infrastructure permit process, to reduce the waiting time for building projects. Trump's added emphasis on internal infrastructure instead of trade with outside partners suggests a softening of Trumps rhetoric, leaving trade snipes and talking points as cursory items within his Address.

DXY Technicals

Dollar bulls will be hoping for a turnaround from support at 88.20, while long-term traders will note that the Dollar index has continued to push lower, and is currently at four-year lows, trading into a positively ancient support/resistance line from 2009 at 89.00.