The American dollar has been having a rather sluggish trading time these past few days. Most of the slowness is due to political insecurity in terms of the successful adoption of tax reform. Although Trump’s administration was able to push forward with the reform, despite the initial challenges, last week the Republicans lost a Senate seat, so the Republicans’ majority in Senate is now just 51-49, meaning it might be very difficult for Trump to get a passing vote. We are expecting a new vote on tax reform any day now.
In addition, a number of reports are coming out this week. Today we expect data on the housing market in the United States, which is one of the most important indications of economic health.
Today we find the dollar index at around 93.19, slightly weaker than a few weeks ago, despite an interest rate hike by the Federal Reserve last week. This has allowed pairs such as the EUR/USD to grow.
