US Dollar Falls on Trump Tax Cut Uncertainty; Euro Rebounds After Catalonia Leader Opens Talks with Spain
Published October 11, 2017
The US dollar remains under pressure this morning due to ongoing uncertainty over US President Donald Trump’s planned tax overhaul; Trump’s recent row with top Republican Senator Bob Corker stoked fears that the president may lose crucial party support needed to pass the tax cuts through the US Congress and Senate.
The Federal Reserve is set to release its minutes from the most recent policy meeting at 2:00 PM EST; the Fed left rates unchanged as expected in September while signaling intentions for a rate hike in December.
Chances for a December rate hike from the Federal Reserve now stand at 91.7%; odds for a December rate hike from the Bank of Canada come in at 67.2%.
The euro rose to two-week highs yesterday against the US dollar and Spanish bank stocks rebounded after Catalonia leader Carles Puigdemont did not openly declare independence from Spain; Puigdemont opted to start negotiations with Madrid on the secession of his proposed state before declaring immediate sovereignty.
A litany of contentious US NAFTA renegotiations demands are set to be discussed this afternoon in the fourth round of NAFTA talks; insiders briefed on the proposals said that the US NAFTA delegation intends to demand more stringent rules on trade surrounding the North American automotive sector.
Oil prices rose for a third session in a row today amid signs that the global supply of oil is tightening; positive forecasts for global economic growth from the International Monetary Fund also indicated that global demand for oil will rise in the coming year.