Currency – The dollar is stable in view of the tax reform

The dollar is stable in view of the tax reform – The dollar is stable at a lower one week against its rivals on Friday, as worries related to the future of the reform of taxation continues to mitigate demand for the greenback.

The Republicans of the us Senate have unveiled Thursday a plan that would reduce the corporate tax rate from 35% to 20% and would bring other significant changes to the tax system of the individual.

However, sentiment on the greenback remained fragile, while the republican leaders of the Senate have said they intend to postpone the implementation of the great reduction of the corporate tax, until 2019.

In the meantime, a draft tax reform law, which differs from the version in the Senate, expected to come into force next year.

If the Senate and the House enact laws to tax separate, the lawmakers will have to reconcile them.

The index dollar, which measures the greenback’s strength against a basket of six major currencies, was stable at 94.44 at 07:50 a. m., AND (11:50 GMT).

The EUR/USD is stable at 1.1648, while the GBP/USD is hauling 0.21% at 1.3173 after the Office for National Statistics uk has indicated that manufacturing production and industrial rose by 0.7% in September, surpassing forecasts for a rise of 0.3%.

Elsewhere, the USD/JPY is unchanged at 113.39, while the USD/CHF is gaining 0.14% to 0.9942.

The australian dollar declined, with the AUD/USD down 0.18% to 0.7666 while the NZD/USD is stable at 0.6942.

Earlier Thursday, the central bank of Australia left its benchmark interest rate unchanged at 1.75% at the conclusion of its monthly meeting on policy, as expected.

The central bank has also forecast a possible rate increase for the second quarter of 2019, three months earlier than planned.

Elsewhere, the USD/CAD gives up 0.09% at 1.2671, its lowest level since October 25.

Like this post? Please share to your friends:
Leave a Reply