Dollar Steady With Eyes on U.S. Tax Plan

USD

On Wednesday, the Greenback held steady vs. a basket of major currencies, amid worries over a possible U.S. government shutdown offset optimism over progress on tax reform plan. However, the USD remained backed by optimism that U.S. Congress could soon pass tax reform legislation that gives the U.S. economy a fiscal support. 

• The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up by 0.04% 93.337 pips.

EUR

The Single currency fell slightly vs. the Greenback, to settle at $ 1.1824 down by 0.01%.

GBP

The Sterling pound fell by 0.38% vs. the USD to settle at $1.3392 as the UK Prime Minister Theresa May failed to reach an agreement on a Brexit deal with the EU. Meanwhile, all eyes will remain firmly fixed on the Brussels negotiations.

JPY

The Greenback fell vs. the JPY by 0.38%, to settle at ¥112.18, as risk appetite decreased.

Gold

Gold prices edged higher, but settled near their lowest level in six-weeks, as traders continued to track progress made by U.S. lawmakers to pass a bill that could reform the U.S. tax system.

Gold Futures - Feb 18 (GCG8), rose as much as 0.41% to settle at $ 1,270.30.

Oil

Earlier today, Oil prices declined, as the U.S. crude stockpiles increased in what the market interpreted as a sign of weak demand.

Crude Oil WTI Futures - Jan 18 (CLF8) fell as much at 0.56 % at $ 57.30 and Brent Oil Futures - Jan 18 (LCOF8) was down by 0.452% at $62.58.

The most important economic events:

• CAD Bank of Canada Rate Decision (DEC 06): (GMT 15:00) – Important – Forecast (1.00%) – Previous (1.00%).

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.