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Dollar Rallies Amid Tax Reform Talk, Pushing Euro Below 1.1900

  • Tactical trading flows seen as EUR/USD drops to one-week low
  • GBP falls from 1.3300 perch as wage data muddy BOE outlook
Bloomberg business news

Why the U.S. Dollar Might Be About to Rally

Updated on

The dollar gained for a third day, its longest winning streak in more than a month, as hopes for U.S. tax reform revived.

The Bloomberg dollar index rose 0.4 percent after Republican leaders said a tax plan from the Trump administration is coming soon. The dollar erased a drop of as much as 0.2 percent and gained against all G-10 peers, while Treasury yields advanced for a fourth day, as House Speaker Paul Ryan said the plan is to have a new tax system functioning next year. Traders await the Bank of England decision and U.S. consumer-price index data due Thursday.