After Donald Trump presented yesterday his plan on the reform of the US tax system, the dollar has become even stronger. Although there are many questions on the initiative of the US president, in particular about the source of funds facing the inevitable growth of the budget, in this case, the market reacted positively to the possibility of lowering taxes. Most especially, the issues mainly concern the congressmen, not businesses, and knowing the features in lobbying for business interests in the US which would influence the decision on the taxes.
Nevertheless, it can continue its growth today despite the overbought dollar. On one hand, the final data of U.S. GDP for the second quarter should confirm the fact of acceleration in the rate of economic growth from 2.0% to 2.2%, which in itself is already very good. Moreover, two representatives of the Federal Reserve acted immediately today after Janet Yellen confirmed the regulator's intention to further raise the refinancing rate, despite the fact that inflation is below 2.0%. If they mention that the labor market is in a good state, then investors will have no doubt that the rate will be raised in December.
The EUR/USD currency pair showed an active downward movement, has already reached the value of 1.1716, where it stopped for a while. However, it still retained an increased bearish interest. It is possible to assume a further decline down to the support level of 1.1650 and a possible decline is expected near this level with a subsequent correction.
The GBP/USD currency pair broke the level of 1.3440 and continued its downward movement. It opens the possibility for the course to move towards 1.3325. In the case of a breakdown of the Fibo cluster, a further decrease towards 1.3260 will most likely happen next.
