A new tax environment on the horizon

Today the Senate approved the most sweeping overhaul of the US tax system in more than 3 decades. Next step will be for the bill to cross President Trump’s desk to be signed into law.

However, the euro held gains with expectations of the Trump administration’s landmark US tax changes being largely priced into the dollar. The US Treasury bond yields have risen to help the dollar’s demand and cap additional gains in the EUR/USD.

We keep our eyes on the release of Q3 US GDP numbers tomorrow with analysts expecting a 3.3% YoY growth. Also, lawmakers will now move on to the budget bill to avoid a government shutdown by weeks end.

Sterling higher

GBP/USD hits fresh highs as BoE Governor Mark Carney’s testimony on the Financial Stability Report lacked any dovish comments. The GBP/USD rate broke though the 1.34 threshold and appears to be headed higher as traders start to cover their short positions.

Economic data is light headed into the holiday weekend, however the UK is set to release their Q3 GDP numbers estimated at 1.5% YoY on Friday before the holiday.

Have a great day.

Will Robertson, The WorldFirst Team