Dollar weaker as investors await details on Trump tax plans
Reuters
Published Feb 27, 2017 09:57AM ET
Dollar weaker as investors await details on Trump tax plans
By Karen Brettell
NEW YORK (Reuters) - The dollar was slightly weaker against a basket of currencies on Monday as investors worried that a speech by U.S. President Donald Trump on Tuesday would not provide many details on his economic agenda.
Treasury Secretary Steven Mnuchin said on Sunday that Trump would use the event to preview some elements of his sweeping plans to cut taxes for the middle class, simplify the tax system and make U.S. companies more globally competitive, with lower rates and changes to encourage U.S. manufacturing.
Mnuchin said last week that he wanted to pass “significant” tax legislation by August, which is later than many investors had hoped.
Mnuchin’s comments “seemed to indicate the details of tax reform will be known probably closer to the latter half of the summer, and we can most likely expect 3 percent growth toward the latter end of 2018,” said Bipan Rai, senior macro strategist at CIBC Capital Markets in Toronto.
“Both of those are somewhat at odds with what the market was hoping for in terms of near-term growth and more clarity around tax reform sooner rather than later,” Rai said.
The greenback was last down 0.19 percent against a basket of six major currencies at 100.90. It climbed as high as 103.82 on Jan. 3 as investors bet that Trump would enact policies that accelerate growth and boost inflation. (DXY)
The dollar dropped 0.40 percent against the euro
The euro also benefited from polls showing that far-right anti-EU leader Marine Le Pen was losing traction in France's presidential race.
French independent candidate Emmanuel Macron would easily beat Le Pen in the second round of the election in May, two opinion polls showed on Sunday.
Sterling slipped to a 12-day low of $1.2382 on a report that Scotland was preparing to call another independence referendum when formal Brexit negotiations are triggered in March.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.