EUR: Making cents of the US tax plan - ING
Despite a lot of fresh (US) inputs, the dollar hasn't gone very far and in fact, one-month EUR/USD traded volatility is crashing below 6% and favouring more range trading in the near-term, explains Viraj Pael, Research Analyst at ING.
“Going forward expect the US tax plan to remain in focus, including potential scoring by the CBO and GOP mark-ups this week.”
“Were the tax plan to make progress, e.g. passed in the House by Nov 16th, we don't think the repatriation story would be key to the dollar. Instead, some elements of the border tax proposal - disguised as 'excise duties' in Brady tax bill - could bring back into focus the economic arguments for a one-off appreciation adjustment in the US dollar.”