The US Dollar is heading lower this morning; after peaking to highs of 94.02 throughout yesterday’s session the US Dollar index (DXY) is looking south and trading at 93.71 at the time of writing. In the background the major factors at play for the USD are currently the appointment of the next chairperson for the Federal Reserve and the developments of the tax reforms proposed by the Trump administration.
President Trump was quoted as saying that he is very close to concluding his choice for the next Fed chairperson, he is considering 5 candidates and Janet Yellen is one of them. Last Friday the Senate approved a budget resolution and this raised hopes for Trump’s tax reforms.
The euro is showing some minor signs of optimism, especially against the USD and the Kiwi this morning – against the rest of the majors it is mostly unchanged. EURUSD is currently at 1.1766 after 2-days of consecutive declines that brought it to lows of 1.1725. Helping the euro is a softer USD this morning but we may also be some anticpation ahead of Thursday’s ECB rate decision and communication.
The situation in Catalonia has not helped support for the euro in these past days. Spain is expected to have senate impliment a direct rule in Catalonia by Friday.
From the european session this morning we have EZ PMIs, later towards the start of the US session we have US PMIs.
