In anticipation of a vote on President Trump's proposed tax reform, the dollar slightly moved away from its two-month lows but remains under pressure. Yesterday the candidate for the post of Federal Reserve chairman Jerome Powell confirmed the confidence to raise interest rates in December, as well as three more enhancements in 2018. A stronger dollar also contributed to the statement of the Federal Reserve Bank of New York about the medium-term inflation target level of 2%.
Yesterday data was published on new home sales in the US, which was more optimistic than expected. This information can serve as a leading indicator of inflation and generally reflects the state of the economy because it affects all of us either directly or adjacent to construction-related and the secondary housing market.
For many traders selling the US dollar the key events will be the speech of FOMC members and the Minister of Finance, as well as the consumer confidence index output.
There will also be a discussion on Jerome Powell's candidacy for the post of head of the Federal Reserve and the Senate's vote on tax reform. Because of this at this time the market will be experiencing increased volatility and the possible formation of topping figures on the charts.
