Why USD isn’t higher against promises of Tax reduction is because the market doesn’t trust the Republicans to come through and the market trusts Yellen and the Keynesians much less. When Obummer was tearing America apart limb by limb for 8 years, not one Republican voice was heard for fear they lose their positions under the Democrats and news media partners.
Budgets for example were passed by Congressional Resolution rather than through normal committee processes. And despite the Republicans control of budgets due to control of the House. Republicans abdicated their positions and became Democrat socialist light. Republicans control majorities in the House and Senate but they remain Democrat Socialists and only about 50 Republicans exist in Congress that can be trusted. These 50 Republicans don’t represent the current Teddy Roosevelt Republicans and their policies won’t see the light of day.
Republicans can pass Healthcare reform today but they don’t want to lose the hugh tax increases coming to the Government. Ask yourself why Healthcare reform won’t pass before April 15th and its because the tax penalties assessed on workers will come to the Government.
The Republican voice is now hidden behind or on the coat tails of Trump. The longer Trump and the Republicans hold out and not pass Tax reduction then the more opposition will come and the opportunity for tax reduction will be lost. Without Tax reduction then the remainder of promises of investments, immigration, healthcare is meaningless. We see more of the same for the next 4 years and USD goes nowhere.
Yellen and the Keynesians fear tax reduction because they lose their power and control. Short term interest rates actually dove yesterday after the Fed statement. The market informs they don’t trust Yellen to come through.
USD is fighting a triple threat, Republicans, Yellen and impending Democrat chaos. The only manner to see Tax reduction and higher USD is for Trump to come out forcefully and daily to intruct Republicans to pass Tax Reform. Trump doesn’t have weeks to dither, he has days. Pass tax reduction then the remainder of Trump’s agenda over 4 year will have a free ride to passage.
What’s driving the EUR/USD lower is Yellen and lower interest rates. The ECB doesn’t require any leg work for a lower EUR because Yellen is doing it by her own words.
EUR/USD levels today are located from 1.0507 to 1.0688. Range break above is not found until 1.0807 and below at 1.0315. EUR/USD is just wandering aimlessly with focus on slow slow downsides.
Below 1.0507 then next targets become 1.0450 and 1.0430. Th two lines we’re watching for many days are no located at 1.0644 and 1.0697. As long as EUR/USD remains below both then both lines will take EUR/USD lower over days to come.