Tax Bill Passes, Dollar Rises: Is This the Beginning of a Big Change?
The US dollar (USD) began to show signs of recovery on Wednesday morning, after weakening for seven consecutive days. The US Dollar Index (DXY) is back nearing the 97.00 level ahead of the release of June private sector employment data from ADP scheduled for today. This data is important because it could provide early clues about the condition of the US labor market before the official non-farm payroll report is released later this week.
On Tuesday, the US Senate surprisingly passed President Donald Trump's proposed tax bill, which was dubbed the "Big Beautiful Bill." The bill contains a permanent extension of the 2017 tax cuts. Vice President JD Vance even came down to cast the deciding vote. The bill will then be brought to the House of Representatives before being signed at the White House on July 4.
Meanwhile, Fed Chair Jerome Powell emphasized at the ECB policy forum in Portugal that his party will remain patient regarding interest rate cuts. Powell emphasized that as long as the US economy remains solid, the Fed will not rush to ease policy. The market welcomed the signal positively, as seen from the US stock index futures moving up on Wednesday morning.
Source: (ayu-newsmaker)
