IronFX Daily Commentary by Charalambos Pissouros | 26/04/2017
April 26, 2017 8:56 am
US President Trump to unveil an outline of his tax plan • Trump pledged massive tax cuts for corporations & individuals, and a one-time repatriation of corporate cash held abroad at a reduced rate. • If we get something along those lines today, it could prove positive for USD & US equities. • However, our view is that there is more scope for disappointment. • No real details or numbers could lead to little market reaction, or even a negative reaction. • Also, pay attention to how the tax cuts are paid for. If his plan is not revenue-neutral (i.e. if the cuts are paid for by an increase in debt), Congress is unlikely to pass it.
BoJ meeting: Unlikely to rattle markets • The BoJ is expected to remain on hold. It could lower its CPI projections a bit, but any reaction in JPY may stay relatively limited.
Euro gets a boost by a Reuters report on the ECB • EUR jumped on reports the ECB may communicate a more optimistic bias at its coming meetings. • Unlikely to do so tomorrow (French election, slowdown in core CPI), but may do it in June. • Could see a negative EUR reaction tomorrow as Draghi may avoid fueling such expectations, but the near-term outlook of EUR remains positive.
Today: • Speakers: UK PM Theresa May will meet EU Commission President Jean-Claude Juncker.
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US President Trump to unveil an outline of his tax plan
• Trump pledged massive tax cuts for corporations & individuals, and a one-time repatriation of corporate cash held abroad at a reduced rate.
• If we get something along those lines today, it could prove positive for USD & US equities.
• However, our view is that there is more scope for disappointment.
• No real details or numbers could lead to little market reaction, or even a negative reaction.
• Also, pay attention to how the tax cuts are paid for. If his plan is not revenue-neutral (i.e. if the cuts are paid for by an increase in debt), Congress is unlikely to pass it.
BoJ meeting: Unlikely to rattle markets
• The BoJ is expected to remain on hold. It could lower its CPI projections a bit, but any reaction in JPY may stay relatively limited.
Euro gets a boost by a Reuters report on the ECB
• EUR jumped on reports the ECB may communicate a more optimistic bias at its coming meetings.
• Unlikely to do so tomorrow (French election, slowdown in core CPI), but may do it in June.
• Could see a negative EUR reaction tomorrow as Draghi may avoid fueling such expectations, but the near-term outlook of EUR remains positive.
Today:
• Speakers: UK PM Theresa May will meet EU Commission President Jean-Claude Juncker.
Join us for more technical and fundamental analysis: http://www.ironfx.com
To get the latest Forex trading news you should:
• Download the IronFX Research app: http://goo.gl/jhQIxO
• Like us on Facebook: https://www.facebook.com/IronFX
• Follow us on Instagram: https://www.instagram.com/ironfx
• Follow us on LinkedIn: https://goo.gl/wSEbPN
• Follow us on Twitter: https://twitter.com/IronFXGlobal
• Circle us on Google+: https://www.google.com/+Ironfxglobal
• Subscribe to our Channel: http://bit.ly/1foFmCU
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