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US President Donald Trump's sweeping tax-cut bill advances to House floor after Rules Committee aproval

The House Rules Committee approved on Wednesday to pass US President Donald Trump's sweeping tax-cut bill to the House floor, clearing a key hurdle for the legislation. The bill, which would extend Trump's 2017 tax cuts and has raised questions over US debt sustainability, will be debated and voted on early Thursday, Reuters reports.   

Market reaction

The above headlines fail to move the needle around the US Dollar Index (DXY) as it continues trade 0.10% lower on the day near 99.50.

US Dollar PRICE This week

The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the weakest against the Swiss Franc.

 USDEURGBPJPYCADAUDNZDCHF
USD -1.35%-1.09%-1.43%-0.88%-0.55%-0.79%-1.52%
EUR1.35% 0.24%-0.05%0.54%0.94%0.64%-0.15%
GBP1.09%-0.24% -0.58%0.30%0.69%0.39%-0.40%
JPY1.43%0.05%0.58% 0.57%1.06%0.86%-0.03%
CAD0.88%-0.54%-0.30%-0.57% 0.36%0.08%-0.69%
AUD0.55%-0.94%-0.69%-1.06%-0.36% -0.30%-1.08%
NZD0.79%-0.64%-0.39%-0.86%-0.08%0.30% -0.79%
CHF1.52%0.15%0.40%0.03%0.69%1.08%0.79% 

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).


The United States (US) House of Representatives is poised to begin casting votes on the Republican party's tax and budget bill that is front-loaded with many of President Donald Trump's wishlist items. President Trump has colloquially referred to the tax and budget bill as a "big, beautiful bill", leading Congressional Republicans to officially rename the document the "One Big Beautiful Bill Act".

Key Republicans have been hammering on dissidents to the bill within their own party after several hard-line Republicans voiced displeasure with the budget outline: some felt that the budget doesn't include enough cuts to critical federal spending programs like Medicaid, while others felt that the budget does the exact opposite of the Republican platform's stated goals of reducing the government deficit.

The budget bill is expected to be voted on sometime Thursday, and if passed, the One Big Beautiful Bill Act is poised to add somewhere between $3T and $4T to the US federal budget deficit over the next ten years. The House Budget Committee managed to smooth over Republican complaints about the budget bill by counterintuitively providing even more tax breaks, increasing federal tax deductions for individuals making up to $500K/year. The tax bill is expected to pass in Congress by a thin majority, where it will then pass to the US Senate for final revisions and another round of voting before going to President Donald Trump's desk for official signing.

Author

Joshua Gibson

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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