Dollar well supported after progress on tax reformPosted 10/27/2017 8:43AM CT |
Dollar: The dollar has extended its upside breakout move to the highest price level since mid-July and while it has slowed its ascent, it continues to hold the upper hand over most major currencies coming into Friday morning’s trading. While the catalyst for the USD updraft came from the aftermath of the ECB meeting, there were positive developments on this side of the Atlantic as well. Progress has been made on approving the tax reform measures that may include a way to repatriate foreign profits, which will provide underlying support to the dollar as long as it is on the table. US economic number have underpinned the USD as well, but the market will need to see positive results from today’s GDP and consumer sentiment readings for the dollar to hold onto its recent gains. Support comes in at 94.47 as the dollar looks to finish the week on an upbeat note.
Dec ’17 Dollar Index Daily Chart
Euro: The Euro has at least put some brakes on its descent, but remains firmly in negative territory early today. Any potential benefit to the Euro from the tapering of QE was offset by the decision to keep the program open-ended and by dovish post-meeting comments by ECB president Draghi. A higher than expected reading on the German import price index provided some support as it points towards an uptick in inflation. However, the situation in Catalonia continues to smolder and will cast a shadow over the Euro. Resistance is at 11700, as the Euro has plenty of work ahead to repair the chart damage sustained over the past two sessions.
Dec ’17 Euro FX Daily Chart