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USD/CAD Moves Higher after Yellen Speech; Market awaits Details on US Tax Reform
Published September 27, 2017
The US dollar broadly strengthened yesterday as the markets digested Janet Yellen’s slightly hawkish speech; despite admitting that the Fed “misjudged” readings of the labor market and inflation, the greenback improved on Yellen’s urgency for monetary policy tightening
US Treasury Secretary Steven Mnuchin, Senate Majority Leader Mitch McConnell, House Speaker Paul Ryan and Economic Council Director Gary Cohn and others are set to reveal the details on a US tax reform proposal later today; reports indicate that the corporate tax rate will fall from 35% to 20%
US President Donald Trump called the tax reform a “very powerful document” and will give more details at 3:00 PM EST; global stocks are higher in anticipation of the details on how tax cuts will benefit corporations in the US
Oil prices remain near their strongest levels in months while giving up modest gains ahead of today’s data release on US crude inventories; speculation of reduced supply brought on by a Kurdish independence movement from Iraq as well as rumors of a supply cut extension have helped boost oil prices this month
Bank of Canada Governor Stephen Poloz is set to speak at 11:45 AM EST today in a speech on “Data Dependence – an Economic Progress Report”; investors will watch to see if Poloz reiterates his colleague’s comments on the strength of the Canadian dollar and its effects on Canada’s economy