Today the greenback climbed to 112.69 Yen, its highest since November 21, as Wall Street rallied and Treasury Yields spiked after US tax reform plans were seen progressing towards legislative approval following an endorsement by Senator John McCain. But the Dollar lost some of its allure after it was decided that the US senate will not vote on the tax bill on Thursday night (US time) and would continue the debate on Friday.
Yesterday, Sterling topped $1.3525, hitting a two-month peak, as hopes grew of a deal between Britain and the European Union. EU leaders are preparing to offer a two-year Brexit transition deal as early as January 2018 after negotiators were close to a deal over the Northern Ireland border. The EU will also pledge to speed up approval for a transition deal that maintains Britain’s present relationship with the EU at a summit in Brussels next month.
Meanwhile, OPEC and its allies outside the group agreed to maintain Oil production cuts until the end of 2018, extending their campaign to wrest back control of the global market from America’s shale industry. The nine-month extension was beefed up through the inclusion of Nigeria and Libya two OPEC members originally exempted from the curbs. Oil has climbed about 21% since the start of September 2017 on tightening supplies and expectations the OPEC and its allies would prolong cuts past the end of March 2018.