Currency – The dollar is lower, in view of the reform of taxation


© Reuters. The dollar is lower, in view of the reform of taxation

Investing.com – The dollar declined on Thursday, as investors await the reform of taxation, and that the book progresses in view of the policy decision of the Bank of England.

The index dollar, which measures the greenback’s strength against a basket of six major currencies, gave up 0.16% to 94.52 at 04:15 AM ET (08:15 AM GMT).

House Republicans should share in the reform of taxation later in the day, in a context marked by internal disagreements.

The dollar has been boosted recently on the hope that the reform of taxation accelerates the growth, fueling the pressure on the Federal Reserve to increase its rates.

The Fed has maintained its interest rates unchanged Wednesday, as expected, but the forecasts of a rate hike in December have been strengthened, while the representatives of the central bank noted that economic growth “solid” and a tightening of the job market.

Earlier Wednesday, non-farm employment from the ADP supports the tightening of policy.

Meanwhile, investors also await the decision of the american president Donald Trump as the successor of Janet Yellen to head the Fed. The american president Donald Trump is considering to nominate Jerome Powell, which would signal the continuity of the monetary policy. Powell is perceived as less falcon that the economist John Taylor, the other candidate to lead the Fed.

The dollar declined against the yen, with USD/JPY at 114.11, close to a low of 113.61.

The euro rose, with EUR/USD up 0.15% to 1.1635.

The book is gaining ground with the GBP/USD up 0.18% at 1.3269 in view of the BoE meeting later in the day, during which the bank expected to increase its rates for the first time since 2007.

Investors will be focused on the degree of consent in order to gauge the likelihood of future increases.

The book changes a little against the euro, with EUR/GBP at 0.8770.

Meanwhile, the aussie and the kiwi are in progress with the AUD/USD up 0.42% to 0.7709 and NZD/USD rising 0.38% to 0.6911.

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