Yesterday the United States Senate approved President Trump’s tax reform bill. Nevertheless, the dollar continued its movement against other currencies much in the same way as before. Investors are in fact increasingly doubtful the tax reform will become final, as there are a number of pending votes on it remaining and the proposal is facing increasing criticism across the board. Today there will be yet another vote on it by the House of Representatives.
It is a little surprising that despite yesterday’s vote in favor of the reform the American dollar wasn’t able to find more support and rally against other currencies. The dollar index remained where it was around 93.09. The euro was able to make a small gain against the dollar past 1.1830, and the yen did too, with the USD/JPY trading around 113.02. Most of the other pairs with the dollar traded without any noticeable changes.
As mentioned above, today we expect another vote on the tax reform, which is currently the single most important development affecting the USD.
