Forex today: Stocks, US yields and dollar rally on Mnuchin's bullish tax reform comments

Forex today was dominated by the US dollar bouncing back from the lows of 99.37 while yields and US stocks also bounced back.

While interviewed on Bloomberg today, US Treasury Secretary Mnuchin who was ver matter of fact lifted spirits in the markets when he said that they “are close” to bring a major tax reform and that reforms will take place no matter the delays thus far. Also, the market got a whiff of the idea that Trump’s administration could be lining up for another attempt for the repeal of Obamacare, with a vote in Congress sighted as Wednesday. 

US 10-years were ranging between 2.1965% - 2.2552%, +1.04% at the time of writing at 2.2374. DXY was trading between 99.374 - 99.850, currently up 0.08% at the time of writing. The euro was a top performer from 1.0707 to 1.0778 until profit taking ensued there for a double top to leave it 0.05% up on the day so far within the 52w range of 1.0341 - 1.1616 as we await the first round of the French presidential elections this weekend.  Sterling was in consolidation for a further day following PM May’s announcement of general elections on June 8th and Parliament approving yesterday. USD/JPY was better-bid to 109.50 from 108.74 as stock markets bounced back. The Antipodeans had a better day with the Aussie rallying from 0.7491 to 0.7547 with metals recovering and iron ore back on the approach to the 80 psychological handle. 

The day ahead:

There are no events scheduled for Asian markets although European data will be thick with respect to manufacturing and services. 

Key events from US session

House Congressional source: There won't be a vote on health care bill next Wednesday - Axios

U.S. Treasury's Mnuchin: Tax reform will happen whether health care reform is done or not

French elections panel:


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