The US Dollar continues to recover and rise for the third straight day as risk appetite returns to markets. Investors are optimistic about the success of the tax reform program, the biggest since the 1980s, amid US stock declines from historic lows.
The US dollar witnessed a significant decline against the Japanese yen after President Trump announced last night Jerusalem as the capital of the Israeli entity in a move that was met with wide condemnation and impedes the peace efforts in the Middle East. During today's trading the dollar index reached its highest level in two weeks approaching the levels of 94, which represents an important resistance level and is currently approaching the 100-day moving average.
US lawmakers appear to be on track to agree on the final bill ahead of December 22, prompting investors to be optimistic about the US economy. Markets are eyeing the release of government non-farm employment data on Friday, which will confirm the continued improvement in the labour market, and support weak inflation and hence continuing monetary tightening.
In other news, nothing is stopping the leading digital currency, and Bitcoin is on the threshold of $15,000.
With the start of trading today, the Australian dollar continued to decline after breaking the ascending channel on the timeline of 4 hours, following the contraction of the trade surplus below expectations, recording about 110 million dollars in October after the surplus in September was about 1.6 billion dollars. The AUDUSD is currently trading at 0.7520 levels since mid-June.
