The greenback recovered vs. a basket of major currencies as Donald Trump revealed a broad outline of the tax reform plan, which would reduce the corporate tax rate to 20%. The dollar index .DXY, which measures the greenback against a basket of currencies, recovered yesterday to 99 pips, in anticipation the first estimate of US economic growth for Q1 2017, as it could grow to 1.2%.
Euro fell from a five month high vs. the greenback after the European Central Bank kept interest rates and its purchase program of €60 billion unchanged. Markets are awaiting Eurozone inflation figures, with expectations that it will increase to 1.8% y/y in April. The common currency may settle at $1.0850 by the end of the day.
The Sterling pound rose to $1.29 vs. the greenback. Cable had earlier surged vs. the euro and the greenback after UK Prime Minister Theresa May called for the general election. The pound awaits the UK GDP growth figures for Q1 2017, where it is expected to have add 0.4%.
Gold extended losses and fell to $1,260, negatively affected by Trump's corporate tax reform plan. The yellow metal may decline further to $1,240.
Oil prices declined further yesterday as investors worried about the ability of OPEC to cut production. Moreover, U.S. crude fell to $49 per barrel, as Libya had restarted two of its main oil fields.
The most important economic events:
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