Summary:

• White House adviser Gary Cohn: “number one priority is taxes”
• Hopes to submit comprehensive tax bill in the fall
• USD has continued to rise since the strong NFP release

Gary Cohn, chief economic adviser to the White House, has been speaking on Fox Business this afternoon with comments relating to the promised tax reform. Cohn has been upbeat on the changes saying that his number one priority is taxes and that the government hope to have submit a comprehensive tax bill in the fall. 

The tax plan will also include incentives for companies to repatriate corporate cash from overseas and this is one area where the positive impact for the US dollar is most clear. Companies wanting to bring money back into the US will have to exchange the foreign currency for US dollars and in doing so this will drive up demand for the buck. 

It is no secret that the US dollar has endured a difficult year with a near constant slide seen in the greenback. However this afternoon’s strong NFP report, alongside these comments from Cohn have given the beleaguered buck a boost.

On short term charts the USD index (USDIDX) has broken above two falling trendlines since the NFP release and the outlook has become more favourable for longs. The market has now rallied a whole point since the jobs data and in doing so has engulfed the weeks trading range in the past two hours.  

 

 The USD index has been further boosted by Cohn’s comments after popping higher on the NFP release