© Reuters. The dollar declined against the yen, the pound remains down
Investing.com – The dollar declined against the yen on Wednesday as concerns about a possible shutdown of the u.s. government offset the optimism about the progress of the tax reform, while the upheavals of Brexit continue to put pressure on the pound sterling.
Sentiment on the greenback has been weakening because of the possibility of a shutdown of the u.s. government if lawmakers fail to reach a budget deal this week. With government funding set to expire Friday.
The USD/JPY gives up 0.45% to 112.10 at 08:45 AM ET (13:45 GMT), its lowest level since the 1st of December.
The demand for the yen has also been supported by geopolitical risks increased, the american president Donald Trump to recognize the capital of Israel later in the day Wednesday.
The index dollar, which measures the greenback’s strength against a basket of six major currencies, changes little to 93.33.
The u.s. dollar was initially boosted after the u.s. Senate has passed a package of revision of tax in the course of the weekend in the middle of the forecast according to which the tax reductions for businesses will stimulate the american economy.
Jobs private non-farm u.s. have increased by 190,000 in November, above the forecast of economists, according to figures released by ADP on Wednesday.
The ADP report is published so that investors are turning to the report on non-farm employment of the government from Friday, for new indications on the strength of the labour market.
The EUR/USD is stable at 1.1811, while the GBP/USD is losing 0.44% at 1.3384 after that England has failed in the conclusion of an agreement with the European Union.
Elsewhere, the canadian dollar rose slightly against its u.s. counterpart before the meeting of the Bank of Canada later in the day, with the USD / CAD 1,2673.
The Boc should keep its reference rate steady at 1.0% because of the uncertainties that could affect the national economy, including the renegotiation of the Agreement on free trade in north america.
The bank has raised its rate in July and in September for the first time in seven years.