Following US President Donald Trump disclosure of his tax reform plan, the dollar remained stable versus other major currencies while global stock markets encountered a drawback on Thursday.
USD Against a Basket of Currencies
Investors are also looking forward to the European Central Bank’s (ECB) announcement regarding monetary policy later in the day.
EUR/USD was down 0.02 percent from1.0905 to 1.0881and was under a five-month peak of 1.0951 hit on Wednesday.
The dollar found support subsequent to President Trump’s confirmation that his plan would reduce the tax rate for public firms and a good number of small companies to 15 percent cutting more than half of the present 35 percent corporate rate. It would also make significant changes to the individual-tax system.
However, the plan labeled as the biggest cut in history by the administration provided no specific details on how it will be paid for without raising the debit which many analysts think is easier said than done.
British Pound US Dollar (GBP/USD) rose 0.3 percent to 1.2887 on Thursday after meeting a six-month peak of 1.2915 overnight.
US Dollar Japanese Yen (USD/JPY) was also up 0.3 percent to 111.46 while the US Dollar Swiss Franc (USD/CHF) rose 0.1 percent to 0.9949.
Japan’s central bank retained its monetary policy unchanged and projected steady growth for the country’s economy.
The Australian Dollar US Dollar (AUD/USD) lost 0.1 percent from 0.7476 to 0.7460 whereas the New Zealand Dollar US Dollar (NZD/USD) fell 0.03 percent from 0.6884 to 0.6862.
As a result of President Trump’s announcement to the leaders of Canada and Mexico that he will not yet end the North American Free Trade Agreement (NAFTA) but will renegotiate it with them instead, the US Dollar Canadian Dollar (USD/CAD)dropped 0.1 percent to 1.3596 after raising to fresh a 14-month increase of 1.3648 overnight while the US Dollar Mexican Peso (USD/MXN) slipped 0.5 percent to 19.0779.
The US dollar index was up 0.1 percent to 99.01.
Meanwhile, global stocks were mixed on Thursday as limited details regarding Trump’s tax reform plan discourage investors and anxiety growing for ECB’s monetary policy decision.
Keeping score, European shares fell in early trading. France’s CAC 40 (FCHI) slipped 0.2 percent to 5,274 while Germany’s DAX (GDAXI) dropped 0.07 percent to 12,464 and Britain’s FTSE 100 (FTSE) was down 0.5 percent to 7,250.
Euro Stoxx 50 (STOXX50E) also lost 0.3 percent to 3,567. Euro index was pulled back by 0.1 percent to 88.06.
US shares were mixed with Dow Jones Industrial Average (DJI) raising 0.08 percent to 20,991 while S&P 500 Futures was up 0.1 percent to 2,385.
Asian equities dropped from a near two-year raise on Thursday with Japan’s Nikkei 225 (N225) down by 0.1 percent to 19,251 at the end of its session.
China’s Shanghai Composite (SSEC) boosted 0.3 percent to 3,152 on its last session while Hong Kong’s Hang Seng (HSI) closed with a 0.4 percent high to 24,698.
Australia’s S&P/ASX 200 (AXJO) was up 0.1 percent to 5,921.
Following Samsung Electronics’ good news, South Korea’s KOSPI (KS11) got a 0.07 percent boost to 2,209 on Thursday.
MSCI’s AC Asia Pacific Index outside Japan increased 0.3 percent to 149.33.
Commodities were mostly down on Thursday excluding gold with a 0.1 percent gain to 1,266 while silver futures slipped0.1 percent to 17.407 and copper losing 0.1 percent to 2.598.
Benchmark US Crude oil edged down 2 percent to 48.57 a barrel while Brent also lost 2 percent to 51.32.
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