FX.co ★ Senators did not allow the dollar to strengthen

The US Senate did not allow the dollar to strengthen, despite the fact that macroeconomic statistics was positive. The US Congress yesterday approved a bill on tax reform which was proposed by Donald Trump. However, the senators postponed the review of the proposal, and will deal with this issue only after Thanksgiving. Moreover, the senators will present their own proposals for tax reform, and what the law will ultimately be is completely incomprehensible. Obviously, the dispute will be serious. And this is not certainty is the most frightening of investors.

Nevertheless, as mentioned above, the statistics were favorable. In particular, the growth rate of retail sales in the UK 1.3% was replaced by a decline of 0.3%. This, of course, is better than forecasts, but the drop in sales can not be called a positive factor. In Europe, inflation seems to have finally stabilized at 1.4%, which is clearly not enough for the ECB to think about raising the refinancing rate or completing the quantitative easing program. Meanwhile, the growth rate of industrial production in the US accelerated from 2.1% to 2.9%.

Today, little statistical data is published, and only news from the US can make a difference in the conditions in the market. The growth in the number of construction permits issued, as well as in construction projects, is forecasted to increase by 2.0% and 5.6%, respectively. So, the dollar will have a new opportunity for growth.

The euro/dollar pair will gradually decline to the level of 1.1775.

The pound/dollar pair will fall to 1.3165.