Investing.com – The dollar rose significantly against a basket of major currencies on Friday as signs of progress in the tax reform strengthened to raise the expectations of the investors in tax to the economy during the opening of the housing data, fueled the mood.
The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0,57% to 93.54.
The National Association of Realtors said on Friday existing home sales increased by 0.7% to a seasonally adjusted annual rate of 5.39 million units last month.
Beat economists forecast of 1% decline to a rate of 5.30 million.
The upbeat housing data transmitter, expectations comes in the midst of awake, that the tax reform will be adopted, sooner rather than later, after the Senate Republicans back to the approved budget on Thursday.
The budget approval is a crucial step forward for the tax reform, as you allow it to, that the Republican cuts forward with tax, without the support of Democrats.
On the monetary policy front, but investors pondered over the reports, suggesting that Federal Reserve Governor Jerome Powell leads the race for the succession of Janet Yellen as the next Fed Chairman.
President Donald Trump, expects a final decision by Nov. 3, the choice between the current Fed chair, Janet Yellen, National Economic Council Director Gary Cohn, Fed Board Governor Jerome Powell, former Fed Governor Kevin Warsh or Stanford University economist John Taylor.
Powell is widely regarded as the least radical candidate — apart from Janet Yellen, in comparison to his colleagues on the shortlist to head the Federal Reserve in February.
Elsewhere, a slump in the Canadian dollar added to dynamics published in the greenback after Canada inflation subdued data and retail sales data growth, unmet expectations.
USD/CAD rose from 1.03% to C$1.2615.
EUR/USD fell 0.64%, while the EUR/GBP fell before 0.62% as investors saw that the European scheduled Central Bank policy meetings next week.
GBP/USD rose 0.24% to $1.3190 as the two UK Prime Ministers Theresa May and the President of the European Council Donald Tusk tried to download claims play out, the Brexit negotiations had reached an impasse.
USD/JPY added 0.77% to Y113.41.