Forex

United States dollar advances against the Japanese safe-haven yen, buoyed by U.S. Senate approved tax bill

US dollar

Monday, the United States dollar settled a two-and-a-half week high against its Japanese counterpart, trading at 112.985 yen JPY= and is considered as the greenback’s highest since November 17. The dollar’s stance was buoyed right after the United States Senate passed a tax bill at the weekend.

In accordance to the tax overhaul which the U.S. Senate have passed on Saturday, the bill’s approval moved the United States President: Donald Trump one step closer in reaching their goal of cutting taxes which is considered as the largest change to the United States tax laws. In addition, the greenback was also reinforced by the rising U.S Treasury yields which advances for about 4 points and settled at 2.404%.

Junichi Ishikawa, senior Forex strategist at IG Securities in Tokyo claimed that the U.S. dollar is aligned and position to extend its gains, that is from a technical outlook. However, it (U.S. dollar) necessarily need progress between the Senate and the House on the tax agenda, as well as an positive data from last week’s (Friday) jobs data.

In accordance to Friday’s current event which involves Michael Flynn pleading guilty to lying to the Federal Bureau of Investigation about his connections and contacts with Russia, Junichi Ishikawa mentioned that the greenback still has to struggle with potential negative pressure from the ongoing Russia probe.

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