US dollar takes a respite on scepticism over tax cuts impact - ANZ

Analysts ANZ explained that the US dollar’s rally paused, with the currency trading on the backfoot overnight. 

Key Quotes:

"The market, having factored in a tax announcement recently, is sceptical about its growth impact.

FOMC member George reiterated the view that further, gradual rate rises are appropriate. But with the market 70% priced for a December hike, the impact of her well-known hawkish view was negligible."

"The yield on the 10-year US Treasury note eased to 2.31%, from an intra-day high of 2.36%, in a lacklustre trading day. The yield on the 10-year bund pushed higher to 0.48% despite German HICP for September coming in a touch lower than expected. Equities were subdued, with both the S&P 500 and FTSE 100 largely unchanged. The DAX rose 0.4% and the CAC 40 was up 0.2%. Oil was softer, with WTI off 1.3% at $51.95/bbl. Gold rose 0.4% to $1287/oz."