Senator Collins stated that it will vote the tax reform adding further assurance that the bill will pass. As certainty of reform passing rises, media reports suggest that scrutiny about the effectiveness of the tax reform also increases. Tax issues arise between federal government and individual states as loopholes are found in the proposed reform. On the international aspect of the proposed tax reform, worries seem to grow in the EU as it may influence US subsidiary businesses in Europe and have a wider impact on global tax rules and even financial stability should one consider the effects on the US deficit.
EUR/USD, yesterday Monday, during the Asian and European morning rose by 98 pips, broke the 1.1820 resistance barrier for a short period of time, and later surrendered some of its gains and continued to trade between the 1.1725 support level and the 1.1820 resistance level. Should the bears take the driver’s seat we could see the pair braking the 1.1725 level and aim for the 1.1680 support zone. Should the bulls take the reins again today we could see the pair break the 1.1820 resistance level again and aim for the 1.1880 resistance zone.