We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
Oil - US Crude
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • What are the Market cycles? How are #currencies impacted in these cycles? How can these cycles impact #forextrading patterns? Find out here: https://t.co/ckr2fUOWqW https://t.co/g7iT8bpi7f
  • What are a few of the common trading mistakes made by traders? Find out from @WVenketas here: https://t.co/d3OFc4yGao #tradingstyle https://t.co/wQ1MAkOb0n
  • The UK population voted the Conservative government back in with a strong majority, giving PM Johnson the backing to push Brexit through. And Sterling (GBP) likes it. Get you $GBPUSD market update from @nickcawley1 here: https://t.co/tjCHWDxoWm https://t.co/Z7Vaadxy5r
  • #Gold prices may fall while the US Dollar gains even as economic policies championed by the Trump administration invite inflation. Get your $gld markets news from @IlyaSpivak here:https://t.co/4lHhHsby56 https://t.co/zF4EyLIRWM
  • Lessons from Bretton Woods are forgotten, the US-China #tradewar represents a true existential threat to the post-World War II international trade order, and in turn, the globalized economy that has grown out of the ashes of history. More from @CVecchioFX :https://t.co/paaBxX6Xt0 https://t.co/tcjkQnaBWl
  • What are the truths and myths of #forex trading? Find out from @DailyFX analysts here: https://t.co/uF75VPzstr #FOMOintrading https://t.co/bDXG2dV3wG
  • The US Dollar technical outlook against the Euro, British Pound, Australian Dollar and New Zealand Dollar are discussed. Large wicks left signs of indecision, will reversals follow? $EURUSD $GBPUSD $AUDUSD $NZDUSD - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/12/15/US-Dollar-Technical-Outlook-EURUSD-GBPUSD-AUDUSD-NZDUSD.html?CHID=9&QPID=917702 https://t.co/dpuIppxo3F
  • What are some trading mistakes @nickcawley1 made during his career and what did he learn from them? Find out: https://t.co/y3cckNW22W https://t.co/vUQyVl6b0e
  • Growth linked currencies have gained as investors hope for progress on the trade front as well as stimulus from the Fed. The global economy however remains depressed and seems likely to remain so. Get your market update from @DavidCottleFX here: https://t.co/jt1HH9AHLM https://t.co/Yz65AMJYlm
  • RT @YuanTalks: #China temporarily suspend additional tariffs of either 10% or 5% on some #US goods scheduled to take effect on Dec 15, said…
US Dollar Gains as Tax Plan Hopes Rekindle Trump Trade

US Dollar Gains as Tax Plan Hopes Rekindle Trump Trade

2017-04-26 09:50:00
Ilya Spivak, Sr. Currency Strategist

Talking Points:

  • Aussie, NZ Dollars continue to drop as Fed rate hike bets rebuild
  • US Dollar gains as Trump White House readies tax plan proposal
  • Failure to placate House GOP may see “Trump trade” unravel

The Australian and New Zealand Dollars continue to sink as a recovery in Fed rate hike bets continued to weigh against rate spread-sensitive currencies, extending yesterday’s trade dynamics. Appropriately enough, the US Dollar outperformed, with the benchmark unit tracking Treasury bond yields upward.

The markets interpreted the outcome of the first round of the French presidential election as neutralizing a potent risk aversion trigger and so removing a major threat to the Fed’s 2017 rate hike ambitions. Indeed, the priced-in tightening implied in Fed Funds futures is now at its steepest in three weeks.

The spotlight now turns to the announcement of a White House tax reform proposal. This is a pivotal component of the so-called “Trump trade”, a post-election narrative that foresaw fiscal stimulus including tax cuts and infrastructure spending stoking inflation and pushing the Fed to reduce accommodation faster.

Traders will closely scrutinize the plan for its pass-ability. Indeed, worries about the possibility that conservatives in the House of Representatives will scuttle any effort that grows the deficit have already emerged. Failure to at least acknowledge these concerns in the announcement may sour optimism.

The fate of the controversial border adjustment tax (BAT), a scheme meant to boost exports and penalize imports, may be another source of division between the administration and its own Republican party members in the legislature. The latter likes it; the former apparently less so.

The President’s aborted healthcare reform effort – the AHCA – raised doubts about his ability to turn campaign promises into policy but didn’t quite speak directly to the “Trump trade” hopeful. Needless to say, tax cuts are another matter. A proposal that looks like it too may fizzle will bode ill for the Fed outlook and USD.

Have a question about the currency markets? Join a Trading Q&A webinar and ask it live!

Asia Session

US Dollar Gains as Tax Plan Hopes Rekindle Trump Trade

European Session

US Dollar Gains as Tax Plan Hopes Rekindle Trump Trade

** All times listed in GMT. See the full DailyFX economic calendar here.

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.


News & Analysis at your fingertips.