What’s next? – USDJPY 21.11.17

The dollar was trading 0.02 percent lower vs the Japanese yen at 112.59 as of 05:50 GMT, with market players looking ahead to further economic reports later in the day.

No economic reports were released in the US on Monday. However, the dollar was able to slightly recover and pushed the pair above the 112.50 mark.

The American currency is now counting on support from the Republican tax bill passed by the House of Representatives last week, which contemplates cuts in individual and corporate rates for next year.

Speculation over Trump’s tax reform has been weighing on market sentiment in the previous week as investors understood the bill suffered major changes from the original project presented by the administration.

Lower taxes for individuals and corporations could boost economic growth and inflation, leaving no choice to the Federal Reserve than hiking rates at a faster pace.

Gains on the dollar have been capped by uncertainty over the Senate vote of the bill, which is scheduled on Thursday. There are currently disagreements over the reform between members of the GOP.

The US dollar index, which measures the greenback against a basket of six major rivals, was trading at 93.95, 0.06 percent to the downside by the time of this writing.

Ahead in the day in the US, attention will be directed to existing home sales for October, with an estimated monthly growth of 0.7 percent to an annualized rate of 5.42 million units.

Federal Reserve Chair Janet Yellen is due to speak as of 23:00 GMT at the NY University.

Fort Financial Services