This is certainly shaping up to be another painful trading week for the Dollar. Bulls were nowhere to be found during Thursday’s trading session, despite the release of yesterday’s somewhat hawkish Federal Reserve minutes. While policymakers expressed optimism over the U.S. labor markets, and believe that tax cuts could stimulate consumer spending, concerns over low levels of inflation lingered throughout the meeting minutes.
The Euro moved higher for much of the session but saw further strength as tax-reform went to a vote in the House. Despite getting passed, the bill violated a Senate rule and even though the Senate is still scheduled to vote tonight, the House must vote again tomorrow after making provisions.
U.S. equity markets are poised to open a little higher on Friday, as we await the passage of tax reform through the House of Representatives giving Donald Trump his first major legislative victory since coming to office.