First major win for Trump administration

The US tax reform passed the voting test of the Senate and the House of Representatives yesterday Wednesday and has marked the first legislative win of the Trump administration. It’s not clear when president Trump will actually sign the new tax law, but there are expectations for it to happen by the end of next week. Media reports suggest however that the new tax plan is still unpopular with voters expecting the new tax law to benefit the rich and not the middle class. Should this perception not be overturned there could be costs for the republicans in votes. On the international level as media reports suggested, Australia’s Finance minister Mathias Cormann voiced the need for
Australia to follow the US example and that the “Australian parliament passes a more competitive business tax rate”. Other media headlines report that Republicans aren’t quite sure if they have the necessary votes in the House of Representatives to avoid government shutdown on Friday, sparking new political uncertainty.

EUR/USD rose yesterday and broke the 1.1880 resistance level for a short period of time, found resistance at the 1.1900 level, surrendered any posted gains and continued to trade between the 1.1880 resistance line and support level 1.1820. Should it come under renewed buying interest, the pair could break the 1.1880 resistance level again and aim for the 1.1910 resistance level. On the other hand should it come under further selling interest the EUR/USD could break the 1.1820 support level and aim for the 1.1795 zone.