U.S. Dollar Climbs As House Budget Approval Clears Path For Tax Reform
October 26 2017 - 11:34PM
RTTF2
The U.S. dollar strengthened against its major opponents in
early European deals on Friday, as House Republicans approved the
Senate's budget, clearing the path for Congress to fast-track tax
reform.
The House passed the budget resolution by 216-212 vote, with 20
Republicans and all Democrats opposing it. With the budget's
passage, a tax reform could be passed with 50 votes and the support
of Vice President Pence to become law. The budget measure would
enable the US federal deficit to expand by up to $1.5 trillion and
facilitate tax cuts. Investors await U.S. GDP data and consumer
sentiment index due later in the day for more clues on economy. The
currency has been trading in a positive territory in the Asian
session.
The greenback advanced to a 5-1/2-month high of 0.9999 against
the franc, 3-1/2-month high of 114.31 against the yen and a weekly
high of 1.3101 against the pound, compared to yesterday's closing
value of 0.9976, 113.97 and 1.3159, respectively. Further uptrend
may take the greenback to resistance levels of around 1.01 against
the franc, 115.00 against the yen and 1.29 against the pound.
The greenback reversed from an early low of 1.1657 against the
euro, rising to a 3-month high of 1.1620. The greenback is seen
finding resistance around the 1.15 area.
The greenback hit a 3-1/2-month high of 1.2885 against the
loonie, compared to 1.2846 hit late New York Thursday. If the
greenback rises further, 1.30 is likely seen as its next resistance
level.
The greenback firmed to a 3-1/2-month high of 0.7626 against the
aussie and held steady thereafter. The pair finished Thursday's
trading at 0.7658.
On the flip side, the greenback gave up its early gains against
the kiwi with the pair trading at 0.6833. This may be compared to
near a 6-month high of 0.6818 hit at 10:00 pm ET. The pair was
valued at 0.6837 when it finished Thursday's deals.
Looking ahead, U.S. advanced GDP data for the third quarter and
University of Michigan's final consumer sentiment index for October
are set for release in the New York session.
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