USD: Finding a top as Mueller charges add to tax reform reality check risks - ING

Viraj Patel, Research Analyst at ING, suggests that while they were expecting the focus this week to be on a forthcoming House Tax Bill and the President’s Fed Chair nomination, stealing the limelight is US special counsel Robert Mueller – who issued the first charges related to his investigation into Russia’s involvement in the 2016 US Presidential election.

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“Political risks had been one of the factors contributing to the dollar’s weakness over summer and a potential resurface of these concerns will certainly take some of the steam out of its recent recovery. More broadly, we’re less optimistic that tax reforms will be a game-changer for our $ outlook anytime soon, not least due to the difficulties the White House will face in getting any bill through Congress. DXY to slide to 94.00.”