Mr Trump said: “We must reject the politics of revenge, resistance and retribution… [and meet] the agenda of the American people.”
The stalemate between the White House and Congress over crucial funding for the Mexican border wall has remained in place after Mr Trump’s speech, with US dollar traders marking time as they prepare for another potential government shutdown which could further destabilise the economy.
Meanwhile, markets are awaiting the publication of nonfarm productivity figures for the fourth-quarter, which are expected to decrease, potentially boosting the GBP/USD exchange rate.
These will be followed by the US trade balance figures for November, which are expected to reveal a narrowing trade gap, which would be good for USD.
Meanwhile in the UK, continuing pressure is being put on the pound ahead of tomorrow’s interest rate decision by the Bank of England (BoE).
Pound traders are remaining apprehensive about the BoE’s decision following yesterday’s poor services PMI figures yesterday, which indicated a slowing UK economy.
There are no UK economic data releases today, with many traders instead focusing on Prime Minister Theresa May as she wraps up her second day in Northern Ireland, where she has reiterated that she remains “unshakable” in her commitment to avoiding a hard Irish border after Brexit.
Investors are, however, remaining cautious ahead of Mrs May’s meeting with EC President Jean-Claude Juncker on Thursday.
Mr Juncker’s spokesman, Margaritis Schinas, stated the “EU’s position is clear [over Brexit]” – a statement which has caused concern to many GBP traders today, with the EU previously stating its unwillingness to make any changes to the Irish backstop issue.
If the EU appears unwilling to budge on this issue we could see the GBP/USD exchange rate come under serious pressure in the days ahead.