1. Uncertainty about tax reform continues to have a negative impact on the dollar.
Senate Republicans in the US yesterday presented a plan that will cut the corporate tax rate to 20 percent from 35 percent and make significant changes to the individual tax system. However, the dollar has seen a decline as Republican leaders said the changes would be postponed to 2019.
Dollar Index and Green Forex Prospects.
At present, the Dollar Index marks a slight correction, with the movement of the tool forming an inverted H & S and a breakthrough in the medium-term downward channel. Our expectations are that the dollar will depreciate a little further by reaching the level of the Neck line and then rising close to the 200 average, against the backdrop of rising interest rates in the country.
2. Raw materials are kept at record levels
Raw material prices have remained close to two-year highs on Friday after hopes of world oil producers expanding their current production efforts, while escalating tensions in the Middle East have sparked worries about potential supply disruptions in the region.
3. Trump Asia Trip continues after a successful visit to China.
Donald Trump attended a major economic meeting in Vietnam where he is expected to challenge new trade rules with North Korea. At the meeting with the Chinese president, Trump managed to negotiate deals totaling $ 250 billion. through which it hopes to reduce the huge trade deficit between the two countries. Trump has also backed China's efforts with the struggle against North Korea.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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