Home > Resource Hub > Daily Market News > Trump’s tax bill triumphs in Senate

Trump’s tax bill triumphs in Senate

Trump’s tax bill triumphs in Senate

The Pound is trading around 1.3380 against the US Dollar on market open after peaking at 1.3405 after the US Senate approved major tax reforms. The upbeat tone seen around the Pound is also driven by the reports citing that the UK PM Theresa May and the US President Trump agreed on the importance of a swift post-Brexit bilateral trade deal over a telephonic conversation late yesterday evening.

The Bank of England Governor and other Financial Policy Committee members are set to testify in the UK parliament later today, with comments focusing on financial stability rather than monetary policy. Treasury yields, meanwhile, dipped slightly from Tuesday’s highs in overnight trade.


US Housing starts reached 1.30 million in November whilst Building permits rose to 1.30 million too. The US current account reduced its deficit by $24.2 billion to $100.6 billion in Q3, beating the market consensus. Further, the US economy is projected to grow 3.3% for Q4.

Data for the US was, therefore, upbeat yesterday but Philadelphia Fed President Neel Kashkari stated in his speech how the Fed should hold on raising rates until inflation returns to target.

The Senate, in agreement with the House of Representatives yesterday, approved what will become the most drastic overhaul of the US tax system within the last 30 years. Final approvals will happen today from the House for a procedural issue but Republicans have the stronger presence in both constituents of Congress so a smooth process from here is expected. This will be President Trump’s first major legislative victory but the critics suggest this tax bill is supporting the wealthy and a deficit-bloating giveaway.


German IFO business climate retreated from a record high to 117.2 in December. The Eurozone labour costs rose 1.6% year-on-year in Q3 whilst wages and salaries per hour worked grew by 1.6% and the non-wage component by 1.5%, in the third quarter of 2017, year-on-year. Eurozone construction fell 0.4% year-on-year in October.

Bank of Italy President and the European Central Bank (ECB) Governing Council member Visco confessed there are still weaknesses in Italy’s banking system, and to solve them we need stability, confidence, and economic growth.

Today’s calendar has already seen German PPI inflation down two ticks at 0.1%. Later, the Eurozone current account is set to book a surplus of EUR 33.2 billion for October. Bundesbank President Jens Weidmann is delivering a key address at 1pm in Milan on long-term challenges for monetary policy.

Data To Watch:

07:00 EUR Producer Price Index (MoM) (YoY) (Nov)
13:00 EUR German Buba President Weidmann speech
13:15 GBP BOE’s Governor Carney speech
15:30 USD EIA Crude Oil Stocks change (Dec 15)

Share this case study
Set yourself up in minutes, make payments the same day: it’s free, easy and without obligation.