Forex Forecast November 1st, 2017

The S. Dollar was steady at the beginning of the day against the other major currencies, as the market awaits for the next political development. The main focus is again the new U.S. tax bill, which was scheduled to be voted in the Senate yesterday, after it was easily passed in the House of Representatives two weeks ago. The vote, however, was postponed to today, Friday, as some of the main issues still needed to be discussed. Even with the new schedule, the bill seems more likely to pass now that it did a couple of weeks ago, since John McCain and other Republican senators publicly endorsed the bill in yesterday’s session. Now, the bill has just one last obstacle to pass, and it appears that investors are quietly waiting for a definitive result. EUR/USD was down just 0.03% for the day, trading steadily at 1.1899 during the late European morning.
Meanwhile, the Euro was trading slightly lower against other major currencies, after another batch of economic data showed more improvement. The Eurozone’s Purchasing Managers Index showed the strongest values in more than 15 years, meaning that the zone’s factories have been busier than ever last quarter. However, just after the good news the single currency shed some gains against the other majors; this was possibly due to investors taking profits on their previously opened positions. Anyways, EUR/JPY was down 0.19% on a 24-hour basis during the morning, trading at 133.72.
At the same time, Oil prices stayed put after OPEC and non-OPEC members decided to extend the cuts program for another nine months on Thursday, as was widely anticipated by the markets. At the meeting held in Wien, the producers agreed to extend their deal until the end of next year, with the option of revisiting it if the market should react in a risky way during these months. WTI Crude Oil was trading at 57.76, while Brent Crude was at 63.16.

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