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USD Starts to Dominate the Market as Trump’s Tax Plan Gains Significance

April 30, 2017
By Anatol Thomas
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Investors are eager to know about the pass-ability of Trump’s tax plan, which pushes USD higher in the forex market. The USD/CAD pair was trading at 1.3600. The Mexican Peso had been having a hard time in the market as it faced its biggest intraday loss on Wednesday. The EIA report showed that the US crude inventories went down larger than expected mainly due to the increase in the refinery production.

Risky currencies are struggling in the market even though the multiple global indices represent a steady increase. Traders are not interested in commodity currencies and emerging markets which provide a higher yield in the present scenario. GBP and EUR are the strongest G8 currencies that remain stable in the market. The geopolitical situation has a greater influence on both the currencies, but the favorable market condition help the currencies at the moment.

ECB and BoJ banks will be announcing the monetary policy changes tomorrow. While both the banks are not expected to change the market drastically, the market will become bias after the announcement. The EUR/JPY pair has been going down in the past one month. The 1-year downside protection level is also lower. With EUR gaining strength and JPY exhibiting weakness, the trend is expected to breakout.