It’s interesting to see how yesterday and today seem to have a same structure of events.

Yesterday we had anticipation of the Federal Open Market Committee (FOMC) meeting that concludes on Wednesday, we had U.S. politics as, we could say, a distraction and we had the noise of the Purchasing Manager Indices (PMI) sentiment data.

By the way, also on Monday, the IHS Markit Flash U.S. PMI showed the sharpest expansion of US private sector output for six months in July. Chris Williamson, Chief Business Economist at IHS Markit commented: “The July PMI surveys show an economy gaining growth momentum at the start of the third quarter, enjoying the strongest monthly improvement in business activity since January.”

Today, we have again the anticipation of the FOMC meeting outcome, the noise of U.S. politics that will continue and another round of sentiment data.

On politics, yesterday we had U.S. senior presidential advisor Kushner testifying on the “Russian question” behind closed doors to Congressional panels.

On Monday evening, Senator John McCain’s office announced in a statement: “Senator McCain looks forward to returning to the United States Senate tomorrow to continue working on important legislation, including health care reform, the National Defense Authorization Act, and new sanctions or Russia, Iran and North Korea.”

Today, we possibly have another attempt at getting the Trumpcare Healthcare reform past by the Senate with one Trumpcare proposal basically amounting to nothing as in repeal and worry about replacing later seems to be an option once again.

For markets, it all comes back to the same point. The Russian question and the Trumpcare uncertainties occupy political time and they create uncertainty amongst international investors. This increases the probability of economic inertia on fiscal policy, or at least reduces the prospect of radical fiscal change and it weakens the dollar as international investors give up time to work out what’s happening in the U.S. and decide to wait and see what the outcome will be.

Meanwhile, from Germany we just got the ifo Business Climate Index, which to be fair is less prone to overreaction than some other sentiment surveys, and which rose from 115.2 points (seasonally adjusted) last month to 116.0 points in July, hitting a new record high for the third month in succession.

From Japan we got the just released minutes of the last Bank of Japan’s Monetary Policy Meeting on June 15-16 that show the Committee discussing exiting from its current extra-special double-helping quantitative policy money printing.

Most of the discussion was about why they should not exit anytime soon and how the Committee members had no idea when the exit should be.

In the minutes we read the following enlightening passage: “On the price front, the year-on-year rate of change in the consumer price index (CPI, all items less fresh food) has been about 0 percent. Inflation expectations have remained in a weakening phase.”

This is interesting because most people in Japan already think inflation is way above that 2 percent target.

Anyway, in clear language for investors this means we shouldn’t expect monetary policy change in Japan anytime soon.

Meanwhile, speaking in Singapore today, Yves Mersch, member of the Executive Board of the ECB sounded dovish once again and in his prepared speech we read: “While inflation will gradually head to levels in line with our definition of price stability in the mid-term, it has yet to translate into stronger inflation dynamics. Headline inflation is dampened by the weakness in energy prices. Moreover, measures of underlying inflation remain overall at subdued levels. Therefore a very substantial degree of monetary accommodation is still needed for underlying inflation pressures to gradually build up and support headline inflation developments in the medium term.”

It is certainly noteworthy for investors that Mr. Mersch’s opinion is remarkably similar to that of ECB’s President Draghi which remains dovish, but that markets have, at least so far, considered as somewhat hawkish notwithstanding Mr. Draghi said last week in his press conference: “Measures of underlying inflation remain overall at subdued levels. Therefore, a very substantial degree of monetary accommodation is still needed for underlying inflation pressures to gradually build up and support headline inflation developments in the medium term.”

All this is important for investors as monetary policies of the Fed and the ECB are bound to diverge further, at least until well into 2018 and that should have its impact on the exchange rate of the dollar, which at present pays the price for the uncertainties that are created by U.S. politics.