The dollar held stable against a collection of currencies on Friday, as attention shifted to U.S. jobs data, with the nomination of Federal Reserve Governor Jerome Powell as the incoming Fed Chair by U.S. President Donald Trump.
On Thursday, President Trump selected Powell to lead the U.S. central bank, ending with precedent by refusing incumbent Janet Yellen an additional term, in spite of these circumstances, plans of resuming her cautious monetary policies ensues.
Trump’s decision conforms with what market participants had been predicting, and the dollar exhibited limited reaction following the news.
The dollar index last settled at 94.696 .DXY, having rebounded from a one-week low of 94.411 on Thursday.
The greenback had fell on Thursday following the reports of the released proposals by the Republicans in the U.S. House of Representatives to overhaul the tax code.
Republicans moved for cutting the corporate tax rate from 35 percent to 20 percent, reducing tax rates on individuals, families and on companies’ foreign profits. Despite this information, the Congressional passage of legislation was far from certain.
According to Stephen Innes, the head of trading in Asia-Pacific for Oanda in Singapore, while the ideas of the tax reform seems to have a positive effect on the dollar, there is still fickleness on how fast it can be executed.
Innes also stated that these conditions could be quite a drawn out process. Further adding that U.S. jobs data expected on Friday would be a near-term focus for the dollar.