Forex – Dollar Little Changed Vs. Rivals as Tax Reform Optimism Fades

Dollar holds steady vs. rivals in cautious trade

Investing.com – The dollar was little changed against other major counterparts on Wednesday, as optimism sparked by the vote of a major U.S. tax reform plan began to fade as traders were waiting for the bill to be finalized and amid other U.S. political concerns.

Sentiment on the greenback weakened due to the possibility of a if lawmakers fail to reach a budget agreement this week. Government funding is set to expire Friday.

The U.S. dollar was initially boosted after the U.S. Senate passed over the weekend amid expectations that tax cuts for corporations will stimulate the U.S. economy.

Some investors also believe the boost to the economy will prompt the Federal Reserve to raise interest rates at a faster pace.

Republicans are aiming to send a final tax bill to the White House before Christmas, with the House and Senate working to reconcile separate versions of the plan.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 93.30 by 05:15 a.m. ET (09:15 GMT).

was steady at 1.1825, while declined 0.44% to trade at 1.3384 amid ongoing Brexit concerns after the UK and the European Union to move to the next stage of negotiations.

Elsewhere, the yen was higher, with down 0.44% at 112.11, while eased up 0.11% to 0.9885.

The Australian dollar was weaker, with down 0.22% at 0.7590, while gained 0.31% to 0.6897.

Earlier Wednesday, the Australian Bureau of Statistics said that gross domestic product expanded by in the third quarter, disappointing expectations for a growth rare of 0.7 and fdown from 0.9% in the three months to June.

Year-over-year, Australia’s economy grew at a rate of in the last quarter, compared to expectations for a growth rate of 3.0%.

Meanwhile, dipped 0.08% to 1.2677.

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