Dollar slips as participants digest US tax cut plans

Last Friday, the US Dollar steadied against its peers, as investors shifted their focus to the non-farm payrolls data, with President Donald Trump’s nomination of Fed Governor Jerome Powell to be the next Fed chair coming as no surprise. The greenback had slipped on Thursday after Republicans in the US House of Representatives released proposals to overhaul the tax code. Republicans called for slashing the corporate tax rate to 20% from 35%, cutting tax rates on companies’ foreign profits and on individuals and families. Markets grew less than expected 256k  in the US employment market in October 2017, a strong rebound from September 2017. Unemployment rate changed to 4.1% in October 2017.

Meanwhile, Sterling nursed its losses after dropping from $1.32 to $1.31 versus its US counterpart. The Bank of England (BoE) raised rate for the first time in more than 10 years, returning to its level before the UK voted to leave the EU in 2016. However, it said that only “very gradual” further increases would be needed over the next three years. Carney added that the Bank would reassess the economic outlook once it had more visibility on the transition to the country’s new relationship with the EU after Brexit.

The Australian Dollar edged lower and hit 0.7676 against the US Dollar after figures from the Australian Bureau of Statistics showed no month-on-month change in countrywide retail sales in September 2017. That was below market expectations for a rise of 0.4% on the month.