US Dollar under pressure around 98.80

The US Dollar Index – which measures the buck vs. its main competitors – is trading almost unchanged in the key 98.80 region ahead of the opening bell in the European markets.

US Dollar unmoved on Trump’s tax reform, looks to data

The index faded part of yesterday’s advance to fresh highs above the key 99.00 barrier, although the bullish attempt lost momentum as the long-waited tax reform by the Trump’s administration came without any surprise to market participants.

The tax reform proposal included, among other measures, a cut to corporate rate tax to 15%, repatriation tax of accumulated offshore earnings and a shift to territorial tax system. The lack of specific details, however, has once again undermined the optimism previous to the announcement and removed some tailwinds from the buck.

In the US data sphere, a busy calendar today comprises Durable Goods Orders, the usual weekly report on the labour market, Pending Home Sales and Goods Trade Balance figures.

USD will also stay vigilant on the risk-appetite trends, particularly in light of the ECB meeting scheduled for later in the European morning.

US Dollar relevant levels

The index is down 0.03% at 98.82 facing the next support at 98.61 (low Apr.26) seconded by 98.56 (2017 low Apr.25) and then 96.94 (low Nov.4 2016). On the flip side, a break above 99.03 (200-day sma) would aim for 99.20 (high Apr.26) and finally 99.59 (38.2% Fibo of the April drop).