Dollar Settles with U.S. Tax Reform in Focus

USD

On Wednesday, the Greenback settled vs. a basket of major currencies, on fresh worries over an upcoming U.S. tax reform. The U.S. dollar was affected by reports that a key corporate tax cut currently under discussion in U.S. tax reform plans may be delayed for one year. The USD had been backed in recent sessions by hopes the U.S. administration's tax cuts could boost the U.S. economy.

• The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down by 0.09% at 94.829 pips.

EUR

The single currency rose as much as 0.15% vs. the USD, with EUR/USD at $ 1.1604 positively affected by a strong Euro-Zone Retail Sales data and a weak U.S. dollar. The European Union's statistics office, said retail sales in the region rose 0.7% month-on-month and 3.7% year-on-year.

JPY

The USD/JPY rose 0.18% to ¥113.80.

GBP

The Sterling pound fell by 0.21% with GBP/USD at $1.3140. On the release front, the U.K retail sales fell by an annual 1.0% and Sales rose 1.9% in September.

Gold

Gold prices edged higher, as the U.S. dollar declined following a media report that suggested a delay in the implementation of a major corporate tax cut under a crucial U.S. tax overhaul plan. Gold Futures - Dec 17 (GCZ7) rose as much as 0.25% at $1,278.97.

Oil

Oil prices declined as Chinese crude imports fell to their lowest level in a year, although investors said the overall market is still well backed because of OPEC-led supply cuts deal.

Crude Oil WTI Futures - Dec 17 (CLZ7) fell as much as 0.30% to settle at $ 57.03, while Brent Oil Futures - Jan 18 (LCOF8) was down by 0.05% at $63.66.

Economic Calendar (all times in GMT)

• JPY Machine Orders (YoY) (SEP): (GMT 23:50) – Medium – Forecast (2.0%) – Previous (4.4%).
• JPY Trade Balance - BOP Basis (Yen) (SEP): (GMT 23:50) – Medium – Forecast (¥829.5b) – Previous (¥318.7b).
• JPY Bank Lending incl Trusts (YoY) (OCT): (GMT 23:50) – Medium – Forecast (3.0%) – Previous (3.0%).

Disclaimer
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.