Weekly Analysis for US Binary Options Brokers
Contents
Fundamentals
Having stayed atop EUR for the past two days, Dollar dropped overnight after reports that the Senate Republic members are planning to delay their decision to cut the corporate tax rate by almost a year.
It must be noted that the House Ways as well as Means Committee Chairman Kevin Brady stated that they would discuss the tax deduction bill a couple of days later. The committee is planning to get the bill passed sometime in the upcoming week. On the other hand, the Senate Republicans may come up with a different bill altogether. In fact, their bill could be completely different in comparison to the version shared by the House. According to reports, the Senate may not implement the corporate tax deductions by almost a year. As a result, the market would only be focusing on how different the versions are from each other and further work towards reconciling them, in the days to come.
Even Fitch, the leading rating company is of the opinion that both the houses would pass the taxation plan. However, they further clarified that the reform may usher only a temporary and modest growth spur and result in a vast fiscal shortage, thereby adding to the United State government’s debt.
Technicals
On Tuesday, there was a little change in the EUR/USD position, as the pair continued to hover around the 1.1600 mark. The pair hovered within a tight trading range, even as traders and US binary options brokers continued to speculate around the outcome of the ECB policy meeting. In the wake of recent developments and price movements, both the brokers and the traders are not expecting much movement from the Euro.
The pair did not register much movement on Monday and according to the financial experts, the traders may continue to look for opportunities to sell the Euro, especially because the pair is dropping lower. Experts also pointed out that if the pair breaks down further, then the market may drop below 1.12 levels.
At present, the Fed is having much influence on the pair and if it chooses to hike the rate of interest by the end of 2017, then the USD will definitely be in a more favorable position. Even the European Central Bank recently announced that it would start unwinding the stimulus program and the time period of purchasing the bond will go beyond September 2018. Trade experts indicated that the Euro will attract investors who are under the impression that it possesses the power to add and increase value. However, they also stated that the traders need to remain patient at the moment.
On Tuesday, the EUR was trading at 1.1607 as opposed to the USD. In fact, USD’s outlook wasn’t too clear as there wasn’t much clarity with regard to the progress of the United States tax reforms and the Central Bank’s leadership. Additionally, USD’s index, which assesses the USD’s performance against some of the major currencies stood flat and was hovering at 94.78. Also, the ten year treasuries yield dropped by 2 basis points to reach 2.316%, which was very low in comparison to the past 2 weeks.
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