Dollar Declines but U.S. Tax Plan Hopes Support

Dollar Declines but U.S. Tax Plan Hopes Support


On Monday, the Greenback traded lower vs. a basket of major currencies, but remained backed by hopes that major U.S. tax plan will be passed before the end of the year. On the release front, markets are awaiting NAHB Housing Market Index for December, which is expected to hit 70.

  • The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down by 0.25% 93.700 pips.


The EUR rose as much as 0.36%, to settle at $1.1791. The Single currency boosted after Leaders of Germany's Social Democrats (SPD) have agreed to enter coalition talks on a new government led by Chancellor Angela Merkel, providing an opportunity to the political crisis in the country. However, talks are not expected to start until January.


The Sterling pound rose by 0.24%, to settle at $1.3354. On the release front, traders are awaiting CBI Trends Total Orders for December, which is expected to hit 15 from 17.


Against the JPY, the USD rose as much as 0.04%, to settle at ¥112.65.


Gold prices settled high, as the Greenback traded lower despite mounting hopes that a major U.S. tax plan could be enforced before the year-end. Gold Futures - Feb 18 (GCG8), rose as much as 0.17%, to settle at $1,259.70.


Earlier today, Oil prices edged higher amid an ongoing outage of the Forties pipeline in the North Sea and as the Nigerian oil workers will begin strike action.  Crude Oil WTI Futures - Jan 18 (CLF8) rose as much as 0.54% at $57.63 and Brent Oil Futures - Jan 18 (LCOF8) was up by 0.66% at $63.63.

The most important economic events:

  • USD NAHB Housing Market Index (DEC): (GMT 15:00) – Important – Forecast (70) – Previous (70).

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