USD rally on tax reform is likely overdone — Credit Agricole

Credit Agricole on the US dollar

Credit Agricole CIB FX Strategy Research discusses the USD outlook in light of the recent development on the US tax reform front.

«The House Ways and Means Committee is due to vote on its version of the tax reform bill Thursday and a vote by a full sitting House is expected next week.

The gaps between the House and Senate bills are beginning to open up and demonstrate the difficult passage the tax reform bill faces. Indeed, other differences between the House and Senate Republicans include the deductibility of local property taxes from the Federal income tax and whether the income tax brackets should be reduced from seven to four. Senate Republicans reportedly want to keep roughly seven tax brackets while lowering the rates paid or changing the income brackets when the tax rates kick in. 

We continue to think that the USD recent rally on the back of tax reform hopes are likely overdone,» CACIB argues. 

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