President Donald Trump proposed the biggest tax reform to the US tax system in three decades, pushing the dollar to a five-week high.
The tax agenda will likely get less push back from Congress than originally thought. Additionally, the features of the reform will help to support earnings growth and propel the US economic recovery.
The dollar was 0.11% weaker against a basket of major currency pairs, after touching a five-week high on the back of the proposed fiscal stimulus.
Since the 20% tax cut put forward fell short of the 15% cut the President promised during his campaign trail, equities were unimpressed, trading slightly lower in the European session.
Financial stocks orignally helped to push European equities higher. The DAX 30 has advanced 0.16%. However, the lacklustre momentum from the US is slowly creeping into the European session, sending the FTSE 100 0.06% lower.
The euro is beginning to trade upwards after a bearish week. The single currency has added 0.2% against the dollar.
The New Zealand dollar is retreating from a rally against the dollar, falling 0.18%. Yesterday, the Reserve Bank of New Zealand kept interest rates on hold, at 1.75%.
Oil is oscillating between gains and losses. For now, the international benchmark, Brent oil, is 1.08% higher at $57.92. The US benchmark, crude oil, is 1.3% higher, at $52.70.
The US Energy Information Administration showed an unexpected decrease in crude oil inventories. Storages came in at -1.8M, forecasts were at 2.9M.
Meanwhile, gold os 0.18% higher after trading near a four-week low earlier in the trading day.