Markets

Forex - Dollar remains broadly higher with U.S. tax reform in focus

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Investing.com - The dollar remained broadly against other major currencies on Wednesday, as investors awaited further details on the U.S. tax reform plan due later in the day.

EUR/USD slid 0.43% to 1.0886, off a five-month peak of 1.0951 hit overnight.

The dollar remained supported after U.S. Treasury Secretary Steven Mnuchin confirmed on Wednesday that the Trump administration's tax plan will include a 15% corporate tax rate.

Speaking to CNBC ahead of today's official announcement, which is expected at around 13.30 ET, Mnuchin said it would be the biggest tax cut and largest tax reform in history.

Investors were also still digesting centrist candidate Emmanuel Macron's victory in the first round of France's presidential election on Sunday.

Elsewhere, GBP/USD held steady 1.2849.

USD/JPY rose 0.34% to 111.47, easing off a one-week trough of 110.97 hit earlier in the session, while USD/CHF was almost unchanged at 0.9947.

The Australian and New Zealand dollars pushed lower, with AUD/USD down 0.89% at 0.7468 and with NZD/USD tumbling 1.02% to 0.6884.

Earlier Wednesday, the Australian Bureau of Statistics reported that the consumer price index rose 0.5% in the first quarter, confounding expectations for a 0.6% gain, after a 0.5% rise in the three months to December.

Year-on-year, consumer prices gained 2.1% in the last quarter, compared to expectations for an increase of 2.2%.

Meanwhile, USD/CAD eased 0.09% at 1.3569, after climbing to a 14-month high of 1.3626 on Tuesday.

Statistics Canada reported on Wednesday that retail sales fell 0.6% in February, compared to expectations for a 0.1% downtick. Retail sales increased by 2.3% in January, whose figure was revised from a previously estimated 2.2% gain.

Core retail sales, which exclude automobiles, slipped 0.1% in February, beating expectations for a 0.3% fall.

The Canadian dollar dropped to a 14-month low against the greenback on Thursday amid concerns over an escalating trade dispute between Canada and the U.S.

On Wednesday, a Canadian official stated that the two countries made progress in their disagreement over Canadian lumber exports "but we are not there yet."

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.25% at 98.97, just off the previous session's five-month lows of 98.56.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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