In currency markets the dollar held its gains from last week’s passing of a key budget bill that opened the way for Trump’s tax plan. But investors are keeping watch on events in Washington as the president deals with fractious members of his own Republican party.
“The big news is that House of Republicans are now scheduled to release a full tax reform bill to the public next Wednesday, but Senate mutter tempered the mood as Republican Senators Bob Corker, John McCain, Rand Paul may not support tax overhaul,” said Stephen Innes, head of Asia Pacific trading at OANDA.
The euro is also in focus ahead of the ECB’s policy meeting Thursday, at which it is expected to announce a big reduction in its bond-buying stimulus as the eurozone economy picks up.
However, the Catalan independence crisis in Spain, one of the eurozone’s biggest economies, continues to play on nerves.
Dealers are also awaiting Trump’s decision on who will run the Fed when Janet Yellen’s term ends early next year
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