The US Dollar peaked to month highs yesterday but finally closed the day in the negative. The US Dollar index, and index that measures the strength of the USD against a basket of 6 major currencies, hit session and highest for September at 93.67 to later close at 93.13. This morning the geenback is struggling to hold on to the minor gains made this morning.
Thursday’s peak into monthly highs for the USD may be attributed to announcement of Trump’s tax reforms. Last Wednesday President Trump unveiled the promised changes to the US tax code, some significant changes were announced whereby corporate tax would drop from 35% to 20% and would bring down the personal tax brackets to 3 from the current 7.
The USD is likely facing some selling on the back of take profits and as tax reform still has to make it through numerous discussions before coming into enactment.
The British Pound is looking south this morning, registering losses against most of the othe other majors. News that Brexit was making some form of progress did help the GBP yesterday however this morning we’re seeing some pressure on the GBP.
On today’s economic docket we look onto German Unemployment Change for September, UK GDP, EZ CPI Estimate, CAD GDP, and US PCE.
