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All Eyes on Tax Reform in the US
Published November 9, 2017
The US Senate is still on track to release its version of a bill to overhaul the nation’s tax code today. The House of Representatives released its version of the tax legislation backed by Republican President Donald Trump last week and is aiming to vote on its bill next week. Passing the tax overhaul has been a priority for Trump and he says that it will stimulate economic growth and create jobs.
EU envoys discussed yesterday about delaying into next year the launch of talks with London on a post-Brexit relationship, raising the risk of businesses shifting out of Britain due to lack of clarity on what will happen after March 2019 when Britain quits the bloc. Lead powers Germany and France insisted that British Prime Minister Theresa May agree in principle to pay an exit bill in the tens of billions of EUR to Brussels before EU leaders agree to open a second phase of Brexit negotiations on the future relationship. British negotiators will be in Brussels today and tomorrow for more talks on that financial settlement, as well as rights for EU citizens and the Irish border.
Brent Crude and WTI both hit two-year highs in yesterday’s session at $64.65 and $57.91 respectively. Crude prices remain near multi-year highs today, after posting modest losses in the previous session when the US Energy Information Administration said in its weekly report that crude oil inventories increased by 2.2 million barrels in the week ended November 3. Brent Crude is up slightly on the day trading at $63.48 as is WTI Crude at $56.90.
The greenback remained broadly lower against other majors today, after the release of disappointing US jobless claims and as uncertainty over the fate of the major US tax reform bill continues to weigh. The US Department of Labour reported that initial jobless claims increased more than expected to 239,000 last week, dampening optimism over the strength of the job market. USD/CAD is currently hovering around 1.2717.