Forex — Dollar rises on U.S. tax reform Talk

© Reuters. Dollar pushes higher vs. rivals with eyes on tax reform plans — The dollar continue to rise against other major currencies on Friday, on fresh hopes for a large US tax reform, and amid continuing speculation about the next head of the Federal Reserve.

The greenback strengthened after the U.S. Senate late on Thursday approved a budget draft for the year 2018 fiscal year, which will pave the way for the Republicans to pursue tax-cut-plans without democratic support.

The Republican-controlled Senate voted for the budget, the dimensions of 51 to 49, which would reductions add up to 1.5 trillion dollars to the federal deficit over the next ten years to pay for the proposed tax.

Meanwhile, speculation about who is Janet Yellen replaced retained as head of the Fed.

Reports that U.S. President Donald Trump has a tendency to Fed Governor Jerome Powell, who is perceived as a less radical candidate, had temporarily weighed on the dollar.

Trump concluded in interviews that he is considering on Thursday with five candidates, including Janet Yellen, the chair of the Fed. He could announce a decision as early as next week.

EUR/USD dropped 0.43% to 1.1801, while GBP/USD lost 0.23% to trade 1.3129.

The euro came under pressure as the Spanish government was set to suspend Catalonia’s autonomy and impose direct rule on the region, the President refused to abandon the push for independence on Thursday.

The announcement came after Carles Puigdemont a unilateral Declaration of independence is not threatened if the Spanish government agree to talks on the issue.

In the UK, the previous data showed that public sector net borrowing rose from £5.33 billion in the last month, the expectations of the market beat.

The yen and the Swiss franc was USD/JPY up 0.72% at 113.55 and with USD/CHF 0.72% climb to 0.9834.

Market participants were looking to Japan planned for the General elections, on Sunday. Current polls suggest that the Japanese Prime Minister, Shinzo Abe, the government coalition is held on the way to a match of the two-thirds «super-majority» in Parliament which was called under the house before the early elections.

The Australian and New Zealand dollars lower at 0.48% at 0.7841 and NZD/USD sliding were with AUD/USD down 0.63 Dollar to a five-month low of 0.6983.

The investors were the news of a new occupational digest-a coalition, formed by New Zealand Prime Minister-elect Jacinda Ardern.

Meanwhile, USD/CAD 0.22% trade increased at 1.2513.

The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.41 percent to 93.38 02:15 PM ET (06:15 GMT).

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