ANZ FX Strategy Research discusses the potential impact of the US ‘repatriation tax holiday’ on the USD arguing that such decision will have only a marginally positive effect on the USD.
"The Trump administration is proposing a one-off tax of 10% on untaxed foreign profits….
We think that while a tax repatriation holiday will add to more positive sentiment surrounding the USD, in isolation it will be unable to be a sole driver of the USD.
Indeed, a strong fiscal impulse elsewhere, able to push the Fed into a more aggressive stance on monetary policy, would be a better candidate for how US tax policy can drive a stronger USD," ANZ argues.
Source: ANZ ResearchOriginal Article
