USD: Trump outlines ambitious tax plan through details are lacking

It was a good day for the US dollar yesterday as it made some gains against the euro and sterling following increased speculation that there could be another interest rate rise before the year is out. The bullish tone Yellen took in her speech earlier this week has had the effect of imbuing traders with confidence in the greenback and Donald Trump’s tax speech last night helped too.

Trump announced that he wants to take the seven individual tax rates and turn them into three – 12%, 25% and 35%. The proposal represents a significant change to the system, although it is still unclear what incomes would pay what rate of tax.

Meanwhile, there was some positive economic data too in the form of US durable goods orders. They increased by 1.7% month-on-month in August, following a 6.8% drop in July. Expectations were for a 1% gain, so the signs are encouraging.