FX.co ★ Possible Changes in the Dodd-Frank Act of 2010

The US dollar fell against the euro during the afternoon trading session on Friday, which is after the release of a weak labor market report.

Traders should remember that the number of jobs outside the US farm in September fell by 33,000, while economists expected an increase of 82,000. As noted in the report, the drop in the number of jobs is associated with a decline in employment in catering. The unemployment rate in the US declined from 4.4% in August to 4.2% in September.

However, it is no secret that the current labor market report should not be given much importance, as job cuts were caused by hurricanes, which is a temporary occurrence.

A number of representatives of the Federal Reserve also said on Friday that the data on the labor market has not yet revealed the full picture of its present situation. Robert Kaplan drew attention to the fact that the impact of the consequences of hurricanes in the United States on the US labor market report will gradually be decreased. In the near future, this could lead to the stabilization of the situation and leveling of indicators.

During the Friday speech of Kaplan, the interest rates were not yet decided whether it is justified to raise rates in December. In his opinion, there is still time to assess the situation before the need to have a decision in December.

Fed spokesman Dudley reiterated that the Fed will raise rates gradually and he also refuses to comment on further terms for raising rates.

The European currency also strengthened its position after it became known that the administration of U.S. President Donald Trump intends to achieve the abolition of a number of rules imposed during the global financial crisis. The Dodd-Frank law, which was adopted in 2010, may be subject to significant changes.

First of all, the abolition of the requirements is being discussed to disclose the size of the earnings of company executives on the salaries of ordinary employees. According to the authors of the new document, it is necessary to change and abolish a number of rules that significantly slow down the stimulation of economic growth.

US Treasury Secretary Stephen Mnuchin said on Friday that optimizing regulatory rules would make the US capital market a true source of economic growth.

Also, the US bond market may be subject to regulation. New rules can eliminate existing gaps in the data of the government bond market and make it more open and transparent.

However, do not forget that the implementation of these recommendations must be approved by the Congress.