The markets again did not see a final vote on tax reform from Republicans in the United States. This event was first announced on Tuesday, November 28. However, this did not happen. On Thursday, November 30, and it was not what the market had been waiting for so long.
The lack of news on tax reform is putting downward pressure on the US dollar rate. This is because the rate is very much associated with the reform and is supposed to be a source of support. The slowdown in the decision in the US Senate indicates a serious struggle in the upper house of the local parliament.
After it became clear that the markets will not see the solutions, sales began in the banking sector of the stock market in the States. The dollar was under pressure but it was not too strong. Another negative for the local stock market and the dollar were news about the likely reshuffles in the State Department. The report that D. Trump can replace the current Secretary of State R. Tillerson on M. Pompeo, the CIA chief, showed investors that instability in US government circles has not disappeared.
On the economic statistics published on Thursday, there were interesting figures on consumer inflation in the euro area, which added 1.5% in annual terms against 1.4% against expectations of growth to 1.6%. However, it was enough for the euro to add 1.4% in pair with the dollar on the wave of negative from the US as well as stabilization of the basic price index for personal consumption in the United States.
Despite the fact that the data of the consumer price index in the eurozone added, this value is still clearly not enough for the ECB to change its decision to smoothly reduce incentive measures. Even if inflation in the region will also grow, it will still not happen. As for the values of the inflationary index of the basic price index for personal consumption for the Fed, it disappointed with its low value, This indicates that inflationary pressure in the country still remains weak, which means that the process of further active raising of interest rates will continue to be a balance between strong economic growth, a positive labor market, and low inflationary pressures.
Forecast of the day:
The AUDUSD pair is consolidating below 0.7580 on the wave of weak data on the Chinese economy. On this wave, it is likely to continue to decline to the level of 0.7530.
The USDJPY pair is trading below the 112.70 level. If the price overcomes it, there is a probability of its local growth to 113.30. At the same time, the inability to do so can cause a local reversal down to 111.80.