© Reuters. The dollar to limit its losses, while the policy is still in the spotlight
Investing.com – The dollar limited its gains against its major rivals this Monday, on the uncertainty related to the tax reform and the political upheaval in Germany.
Last week, the House voted to adopt a tax law which would reduce the corporate tax and reduce the income tax of the individual for the most households by 2018, as part of the largest overhaul of the tax code of the united states since the 1980s.
But the legislation may face a fight harder in the Senate in the middle of the resistance within the ranks of republicans. Lawmakers from the Senate should vote on their version of the bill after the Thanksgiving holiday this week.
The markets were also agitated due to an ongoing investigation on the potential interference of Russia in the presidential election of 2016.
The index dollar, which measures the greenback’s strength against a basket of six major currencies, was stable at 93.54 at 05:15 a. m. AND (09:15 GMT).
The EUR/USD changes little 1.1794 while the GBP/USD rose 0.42% at 1.3272.
The negotiations failed after the liberal democratic Party (FDP), a pro-business has left the negotiations, putting an end to efforts to form a coalition government, to three lanes.
The collapse of the talks leaving German chancellor Angela Merkel the opportunity to form a minority government. If no new government is formed, the chair may call a new election.
Elsewhere, the yen and the swiss franc are stable with USD/JPY at 112.14 and the USD/CHF at 0.9892.
The australian dollar is unchanged, with the AUD/USD to 0.7564 while NZD/USD gaining 0.25% to 0.6833.
In the meantime, the USD/CAD gives up 0.09% to 1.2771.