USD lacks a catalyst to extend its rally - ANZ
With Powell confirmed as Fed chair and the tax bill now public, the USD lacks a catalyst to extend its rally, according to analysts at ANZ.
“Powell represents continuity, and his view is largely consistent with Yellen’s gradual tightening, so it’s business as usual at the Fed. Meanwhile, the tax bill has already run into opposition and, in its current form, it looks more like a starting point for negotiation designed to pass the House and then be re-shaped in the Senate. This suggests the path to tax reform has a long way to go.”
“In terms of Fed’s talk, we’ll keep an eye on Dudley and his comments on inflation and wages, as the ‘low-inflation, strong-growth’ theme continues to cast a shadow on the tightening path.”