US President Donald Trump on Wednesday offered proposals for tax adjustments that would be the largest in US history, and told reporters at the White House that they would be something special for Americans. The dollar rose over the course of today's trading, as the dollar index rose from a daily low at 92.79 to reach its highest level since August 23 at 93.40.
The US Dollar took advantage of optimism in the markets to make progress in the US tax reform plan to continue rising against the EUR, as the EURUSD continued its decline to its lowest level since August 18 at 1.1716, after breaking the neckline of the head and shoulders pattern we mentioned yesterday.
Also, the Sterling dropped against the USD after breaching the support level at 1.3450 / 60 and stabilizing below it to trade currently at 1.3385 against US dollar. Especially after former Bank of England Monetary Policy Committee member David Blanchflower said there was no basis for raising interest rates in November, after the Bank of England warned at its last meeting that there might be a rate hike in the coming months.
The Canadian dollar fell strongly against its US counterpart, after a speech by Bank of Canada Governor Stephen Poloz, in which he emphasized the strength of the economy and that the path of interest rates is fully dependent on economic data. The USDCAD rose to its highest level since the beginning of September at 1.2481.
In New Zealand, for almost an hour, the Reserve Bank of New Zealand kept interest rates at 1.75%, stressing the need for the New Zealand dollar to depreciate to help New Zealand's economy. The New Zealand dollar declined after the decision to trade at 0.7200 levels against US dollar.