The Dollar rally stalled on weaker U.S. data and on concerns regarding the US Tax bill
Thursday saw a rally for the majors against the $US as the EURUSD, GBPUSD, USDJPY , USDCHF all strengthened against the $. Unemployment claims rose in the States as the U.S. department of Labor reported a rise in initial jobless claims to 239,000 last week against expectations of just 232,000. This put a slight downer on the optimism over the strength of the job market. In addition, investors are cautious as the Washington Post reported that Senate Republican leaders were thinking of postponing the implementation of major corporate tax cuts. Any postponement or the possibility of “watered down” reforms are keeping investors jittery. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.25% at 94.53 by 10:50 a.m. ET (14:50 GMT). Wall street was also affected as the Dow lost 100 points on the open as Tech stocks pulled back and amid skepticism over the Republican Tax cut following the Washington Post report. The U.S Senate and the House are planning to unveil differing tax cut bills which is complicating the tax overhaul push.
Save the date. March 29th 2019, 11pm GMT
In a move to make things “crystal clear”, the exact time and date of Brexit will be written into law and included in the EU withdrawal bill. Prime Minister May is determined to warn Tory rebels that Brexit will not be derailed and that any attempt to block Brexit will not be tolerated. The amendment committing Brexit day in law will be considered by MPs when the bill returns to the Commons next week. With Ms. May’s fragile grip on power and reliance on DUP votes for a Commons majority, there is a real vulnerability for a Tory rebellion. As reported in the Daily Telegraph the Prime Minister said: "We will not tolerate attempts from any quarter to use the process of amendments to this Bill as a mechanism to try to block the democratic wishes of the British people by attempting to slow down or stop our departure from the European Union."
Mr. Davis, the Brexit Secretary indicated that he was taking a "pragmatic" approach to MPs' concerns by writing the Brexit date into the Bill. He said: "Our amendment makes it crystal clear that the UK is leaving the EU at 11pm on March 29 2019.