The US dollar decline has stalled but it remains under a cloud amid concerns about low inflation, according to Imre Speizer, Research Analyst at Westpac.
Key Quotes
“The US event highlight this week is the FOMC on Thu, including a press conference and a fresh set of dots and projections. The FOMC is sure to announce balance sheet tapering but they likely cut PCE and neutral rate forecasts too and the dots likely migrate in a dovish direction. Base effects ensure ongoing easing in the annual CPI/ PCE prints into Q1 next year while US activity data will look spotty at best until the hurricane disruptions are worked through.”
“3 months ahead: Trump’s tax overhaul is enjoying some renewed limelight but the path to success continues to narrow. Congress is sure to balk at the sheer size of the package, with personal and corporate tax cuts amounting to more than $5trn, while repealing very popular deductions as offsets will prove tough.”
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