Forex - Dollar Dips before US Tax Bill Fed Pick; Sterling Tumbles

© Reuters. Dollar dips before U.S. tax bill, Fed pick; sterling tumbles

Investing.com - The dollar was a touch lower on Thursday as investors stayed on the sidelines ahead of the unveiling of a U.S. tax bill and President Donald Trump's decision on the next head of the Federal Reserve.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 94.63 by 09:11 AM ET (01:11 PM GMT).

House Republicans were expected to release a later Thursday amid ongoing internal disagreements over how proposed tax cuts will be paid for.

Lawmakers have made plans for measures seeking up to $6 trillion in tax cuts over 10 years.

The dollar has been boosted in recent months by hopes that tax reforms could bolster growth, adding pressure on the Federal Reserve to raise interest rates, known as the "Trumpflation" trade.

The Fed left on Wednesday in a widely expected decision, but expectations for a December rate hike sharpened as officials noted “solid” economic growth and a tightening labor market.

Meanwhile, investors were awaiting an official White House announcement on Trump’s pick for the next Fed chairman.

Recent reports indicating that Trump is likely to appoint Fed Governor , who is viewed as more dovish than other candidates, have weighed on the dollar.

Sterling was sharply lower, with down 0.89% at 1.3125 after the raised interest rates for the first time in almost a decade on Thursday, but said that any further hikes would be at a gradual pace and to a limited extent.

The BoE also warned that Britain’s decision to leave the European Union is having a “noticeable impact on the economic outlook”.

Sterling fell to one-week lows against the euro with advancing 1.11% to 0.8869 from 0.8758 earlier.

The dollar was a touch lower against the yen, with last at 114.10, holding above an overnight low of 113.61.

The euro nudged higher against the dollar, with rising 0.22% to 1.1644.

Disclaimer:Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Read Again Forex - Dollar Dips before US Tax Bill, Fed Pick; Sterling Tumbles : http://ift.tt/2gXxiil

Let's block ads! (Why?)