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US Dollar Softens as Markets Unsettled by US Tax Plans

Categories: AUD, CAD, EUR, GBP, Markets, News, NZD, USD

Sterling

The Pound (GBP) initially tumbled against the majority of its peers yesterday as markets feared that the recent political instability in the UK would impede Brexit negotiations.

However sentiment improved again by the afternoon allowing Sterling to mount a reasonable recovery by the end of the European session.

The Pound may also push higher today with the release of the UK’s latest trade figures as economists forecast that Britain’s trade deficit will have narrowed in September.

Euro

The Pound Euro (GBP EUR) exchange rate fell close to a weekly low on Thursday as rising Brexit uncertainty weighed heavily on the pairing.

The single currency was also bolstered by an uptick in Germany’s trade balance yesterday as figures showed the nation’s surplus jumped from €20.1bn to €24.1bn in September.

However the Euro may dip later this morning as economists forecast that Italy’s industrial production will have declined at the end of the third quarter.

US Dollar

Sterling surged against the US Dollar (USD) late on Thursday as investors focused on the differences between the Senate and House tax proposals.

Markets fear that these differences will complicate the implementation of tax reforms and delay the long awaited corporate tax cuts that investors hope will bolster growth in the US.

Meanwhile the ‘Greenback’ may retreat again this afternoon with the release of the latest US Consumer Confidence data, with some economists forecasting that household sentiment will have dipped this month.

Canadian Dollar

Despite efforts to rally yesterday the Pound Canadian Dollar (GBP CAD) exchange rate continued its recent downtrend this morning as the ‘Loonie’ continues to find strength from robust oil prices, with the political tensions in Saudi Arabia propping up Brent Crude at $63.93 a barrel.

Australian Dollar

Sterling was able to mount a recovery against the Australian Dollar (AUD) overnight on Thursday as investors soured on the ‘Aussie’ following a dovish monetary policy statement from the Reserve Bank of Australia (RBA), in which the bank lowered its inflation forecasts for the next couple of years.

New Zealand Dollar

The Pound New Zealand Dollar (GBP NZD) exchange rate rallied almost two cents last night as the ‘Kiwi’ was seen tumbling by remarks from Reserve Bank of New Zealand (RBNZ) Assistant Governor, John McDermott in which he suggested that it ‘would be good if NZD fell a little bit further.’

TorFX Author: TorFX

“Our company’s mission is to provide outstanding exchange rates, expert guidance and a simple, friendly service that people will want to recommend to others.” – Jon Beddell (CEO). Contact TorFX for an FX Quote – UK & Europe – Australia & NZ.

Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product. Full Disclaimer

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