The main currency pair is growing on Thursday; the pause in the US taxation system reform decision is against the USD.
On Thursday afternoon, the EUR/USD pair is trading close to three weeks’ lows. The current quote for the instrument is 1.1877; the yesterday’s high was at 1.1902.
The US Dollar was “knocked down” by the news. Yesterday, the US media published a note that Donald Trump may delay signing the final draft of the taxation system reform project due to some problems with financing from be government. All those things combined: at first, the US Senate and House of Representatives took too much time to agree on the project, then the government did the same to provide reasons for additional financing of its activity.
It appears that the taxation system reform project is ready; it has passed all necessary checks, but right now it is “stuck” for no reason at all. Earlier, Trump spoke about a Christmas gift for Americans in the form of the taxation reform, but now it seems that there will be no gifts at all.
Well, frankly speaking, it’s not very important whether the document is signed by Christmas or 10 days later. The more important fact that it will get the final resolution and be forwarded to executive authorities. However, investors are feeling nervous because of the above-mentioned problems.
The evening section of today’s macroeconomic calendar includes a couple of interesting for the USD reports. One of them is the final GDP readings in the third quarter 2017. No one is expecting any serious changes in comparison with the previous estimation (+3.3%), but if the indicator improves, the USD may rise a bit.
RoboForex Analytical Department