US Dollar holds steady amid optimism over tax bill

   •  Preserves end of the week recovery led by tax-cut legislation news. 
   •  US government shutdown risk now seemed to cap gains.
   •  US macro data also eyed for fresh directional impetus. 

The US Dollar managed to preserve Friday's modest recovery move led by progress on tax reform legislation. Republicans on Friday put the finishing touches on a sweeping tax code overhaul bill, with a Senate vote expected as early as Tuesday and the US President Donald Trump aiming to sign the legislation by the end of this week. The gains, however, remained limited as investors seemed to opt for a wait-and-see approach until the deal is actually sealed.

Although the long-awaited tax bill is most likely to be passed, the US government also faces the risk of a shutdown if it does not extend the spending limit beyond December 22 and was eventually seen holding traders from placing fresh bullish USD bets. 

Meanwhile, a goodish pickup in the US Treasury bond yields might continue to contribute towards limiting any deeper losses as investors now look forward to this week's key economic releases for some fresh impetus. This week's US economic docket features the release of final GDP growth figures, which along with housing market data, durable goods orders and the Fed's preferred inflation gauge - Core PCE price index, might help investors determine the next leg of directional move.