USD limping into the weekend - BBH
|According to analysts at BBH, the US dollar is limping into the weekend and is down against all the majors this week, with Stockie the best performer over the past five days (up 0.9%) and Aussie the worst (up 0.2%).
Key Quotes
“The dollar has fared better against EM, putting in a mixed performance with BRL the best performer over the past five days (up 1.9%) and INR the worst (down 1%).”
“The lack of any major US data prints this week was one reason behind the greenback’s lackluster performance. So too was uncertainty about US tax reform. Indeed, that uncertainty will continue into next week. This could lead to further consolidative trade in the coming days.”
“The dueling tax plans from the Senate and the House came in largely as expected, thanks to many leaked details. The main differences between the two are that the Senate version eliminates the so-called SALT deductions and delays the corporate tax cut a year until 2019. Also, the Senate version keeps the estate tax even as the House would eliminate it over time.”
“Both sides continue to work towards finding the right compromise. A full House vote is planned sometime next week, while the Senate Finance Committee will start to mark up its version on Monday. Repealing Obamacare’s individual mandate is reportedly still on the table. While repeal would save nearly $350 bln in subsidy costs over a decade, it is a political landmine.”
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