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By Associated FX Analysis Team

Kantox currency update: doubts about Trump’s Tax plan hurt the dollar

Published November 10, 2017

Dollar shaped maze

The U.S. dollar has been trading slightly lower over the last days, trimming gains against the euro and the Japanese yen, with the investors disappointed by the delay of the corporate tax cut plans and amid growing concerns about the fate of the Tax Bill.

The British pound has remained pressured, especially against the euro, in a context of increasing doubts about May’s capacity to reach a good Brexit agreement with the EU, which is dampening investors’ interest in British assets.

EUR/USD one-week highs at 1.1650. The euro advanced on Thursday, favoured by a weaker dollar, and extended its rebound from 2, ½ lows at 1.1555 on Tuesday to week highs at 1.1650 so far. At London market opening times, the EUR/USD is trading at 1.1625.

GBP/USD steady above 1.3100. Sterling has remained trading within recent ranges supported above 1.3185 and with upside attempts capped right above 1.3150. At London market opening times, the GBP/USD is trading at 1.3125.

USD/JPY: seeks support at 113.00. The dollar extended its pullback from last week highs at 114.75, to test immediate support at 113.00 area which has remained firm and where the dollar has found buyers to return to 113.50.  At London market opening times, the USD/JPY is trading at 113.50.

In the Calendar Today

At 09:30 GMT, National Statistics will release the UK Manufacturing and Industrial production figures. With the pound pressured on concerns about the consequences of the Brexit, a negative reading on factory activity might increase doubts about the health of UK economy and increase negative pressure on the sterling.

09:30 GMT       UK: Manufacturing Production (MoM) (Sep)
Prev: 0.4%            Cons: 0.3% 

09:30 GMT       UK: Industrial Production (MoM) (Sep)
Prev: 0.4%            Cons: 0.3%


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