USD: Reflation sentiment dented as Senate serves up a Tax Bill curveball - ING
The US tax reform saga continues to dominate the USD narrative, with the latest twist being the release of the Senate’s own version of the House’s ‘Tax Cuts and Jobs Act’, according to Viraj Patel, Foreign Exchange Strategist at ING.
“In a nutshell, the Senate has pretty much taken out any of politically contentious tax policies – with the corporate tax rate cut to 20% delayed till 2019 (as opposed to the House’s intent for instant enforcement). Moreover, Senators remain wary that drastic changes still need to be made in order to adhere to their more stricter fiscal rules, such that the tax bill can be voted through with a simple majority. With the Congress week-long Thanksgiving recess starting next Friday, the odds of a GOP tax plan landing on President Trump’s desk this side of Xmas remain slim-to-none. A growing realisation of this will see the $ slide even lower.”