The US House of Representatives voted yesterday to clear a procedural path forward for a Republican tax bill. The bill is still being written and is expected to be unveiled next week as Trump seeks his first major legislative achievement. House Republicans approved a fiscal 2018 budget measure that would make enactment of an eventual tax bill easier in the Senate. The plan the Republicans have offered for revamping the tax code is opposed by the Democrats as being a give-away to corporations and the wealthy.
The US economy surged past growth expectations in Q3 causing USDCAD to break through 1.29. Analysts expected hurricanes Harvey and Irma to have more of a negative effect on America’s GDP growth. The report was expected to show growth slowing to an annual rate of 2.6% from 3.1% when in fact, the report came out at 3.0%.
US futures rose today; investors remain optimistic amid upbeat earnings releases and economic data. The S&P 500 futures increased 0.21% as of 8:56 AM EST while Dow futures rose 0.11%. Tech heavy Nasdaq 100 futures sky-rocketed 0.84%. Investors will be looking for another sign of a strengthening US economy when the University of Michigan consumer sentiment report for October is released at 10 AM EST.
WTI Crude is down ~0.20% on the day to $52.52 at 9:20 AM EST, while Brent Crude is down ~0.30% on the day to $59.10. Nevertheless, oil is on track for weekly gains of around 2% on hopes that OPEC could announce an extension of the agreement to curb production.