By: DailyForex.com
The US Dollar came under pressure against the Euro on Tuesday as FX traders show their wariness over the passage of the US tax reform bill. Analysts have expressed grave doubts as to the extent that the bill’s passage would actually provide stable and enduring economic growth for the United States. Also, ahead of the upcoming holidays, traders seem content to remain on the side lines and have shied away from making large positions. Analysts say that the tax reform bill’s passage should help boost risk appetite provided it passes both the House and Senate before the year’s end.
As reported at 10:57 am (GMT) in London, the EUR/USD was trading at $1.1809, a gain of 0.23%; the pair earlier hit a peak of $1.18200 while the session low is at $1.17750. The USD/JPY is trading at 112.602 Yen, a gain of 0.04%; the pair has ranged from a session trough of 112.490 Yen to a peak of 112.665 Yen. The GBP/USD was trading at $1.3369, down 0.09% and not far from the session low at $1.33633; the session peak is at $1.3403.
Federal Reserve Weighs In
The US Federal Reserve Bank has made their forecasts on growth now that the GOP has released its tax reform bill. They predict that, by 2020, growth will have eased back to just below 2%, well off the 3% growth rate that the GOP administration is touting as a benefit of the bill’s passage. Non-partisan analysts and experts alike have dismissed the GOP’s assertions and are predicting a lower growth rate and a significantly higher debt burden.