Despite the outlook for another relatively quiet day on the currency market, we will get an opportunity to take the pulse of the U.S. real estate market with the release of Housing Starts and Building Permits data for November. Although expectations are in favour of a drop of -3.3% and -3.1%, respectively, we could very well be pleasantly surprised. Home builder confidence in December is at its highest point since July 1999, spurred on by economic growth driving demand for housing.
Turning to the famous tax reform plan, another senator has confirmed his support. Mike Lee (R - Utah) will vote for the bill, which continues to win allies. No doubt this has nothing to do with the fact that for certain senators, the savings related to the plan could be a seven-figure amount compared with $800 for a family of four. The popular perception is still that adopting the plan will have a significant impact on the economy. Even U.S. Federal Reserve Chair Janet Yellen attributed the recent strength of the economy to potential accommodative tax measures by the Trump administration. Members of the House of Representatives will vote on the bill today at 1:30 p.m.
Yusuf Kocagozli
Range of the day: 1.2810 – 1.2925