State of the market

The US currency weakens against its main competitors due to the political risks regarding the tax reform in the US.

The tax bill jammed by the time frames and political bureaucracy, which constantly raises more and more risks. So, there is some fear in the market regarding the tax reform related to the resolution on financing, as there are only two days left. Also, the tax bill needs to be signed by the US President D. Trump, which can also be delayed due to the upcoming holidays.

As a result, the US dollar index maintains a downward trend, limited to the lows of the week. Despite the progress of the tax reform in the US, the negative sentiment about the American persists.

Graph of the US dollar index. The current price is 93,300.

The New Zealand dollar strengthened at the end of the day yesterday due to the strong data on New Zealand’s GDP growth. But, despite this, the pair NZD/USD remains limited to a significant overbought and strong resistance level of 0.7030.

Fig. NZD/USD. The current price is 0.7000.

Hanzenko Anton