The U.S. dollar closed higher yesterday on the back of the President Trump’s tax reforms hearing advancing in the senate. Investors are hopeful that the tax reform plans could soon be implemented after the bill moved to the senate. Elsewhere, Fed nominee Jerome Powell’s confirmation hearing got underway. The potential candidate indicated his preference for normalization of interest rates and maintaining that the Fed’s balance sheet unwinding program.
On the economic front, data yesterday saw Japan’s retail sales declining 0.2% on the year which was below estimates of a 0.1% and posted declines following a 2.3% increase previously.
Looking ahead, the U.S. second revised estimates for the third quarter GDP will be released. Economists polled expect the GDP to be revised higher to 3.3% for the quarter, slightly higher than the preliminary estimates of 3.0%.
The Fed chair, Janet Yellen is expected to testify to the Joint Economic Committee in Washington today.
