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USD rises as Senate takes first step on taxes

Finally, the unified Republican government is beginning to get something done. Taxes are easier to tackle than health care, which is clearly complicated.

The Senate passed a budget blueprint for 2018. This prevents a filibuster by the Democrats and allows an easier passage of any tax reforms. Yet as with healthcare, the devil may be in the details. The Republicans need to discuss the details and agree on them. They can only lose two votes in the Senate.

Update: the move makes more waves and sends USD/JPY to high resistance.

The US dollar is reacting positively to the news, that comes deep in the Asian session. The greenback is up some 20 pips across the board. When European traders join in, they could give the dollar another boost. However, a significant dollar move could come if tax cuts really cut it all the way. With Trump’s achievements so far, there are good reasons to doubt it.

More:  Appointing Taylor to Fed Chair could boost the USD by 3-5

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.