The Dollar in Focus with the House Due to Vote on the Tax Reform Bill

Daily Update - 19th December 2017

Yesterday’s Focus

• EUR Consumer Price Index
• US NAHB Housing Market

Yesterday’s Explained

Italian Trade Balance numbers have come in stronger than estimated this morning, which continues the recent streak of solid economic data for the European Union. While the European Central Bank stuck to its guns last Thursday, making no change in policy, incremental improvements in the E.U continue to be seen economically. The Euro has gained slightly today in early trading against the U.S Dollar but is still below the 1.18 level which may lead to more speculative buying positions of the European Currency.

Today’s Focus

• EUR IFO, Business Climate
• US FOMC Member Kashkari Speech

Today’s Market

We have a fairly light European calendar ahead, with the Swiss SECO economic forecasts and German IFO business surveys lined up for release. Meanwhile, the NA session remains quite eventful, with the US current account, housing starts, and building permits data due to be reported ahead of the NZ GDT price index and FOMC member Kashkari’s speech.

However, these economic updates are likely to play a second fiddle to the US House vote on the tax reform bill scheduled later in the American afternoon, which is expected to set the tone for the USD markets in the coming days.