The US dollar is still under pressure, maintaining its earlier losses against the British pound, the euro, the Japanese yen, and other major currencies.
The dollar index is currently down 0.5% today, close to the two-week low hit earlier. This is a clear reaction to the Democratic wins in the House of Representatives last night.
Investors are concluding that Donald Trump won’t be able to get another big tax cuts package through Congress, meaning less inflation and consequently less pressure to raise US interest rates in 2019 and 2020.
Gridlock on Capitol Hill reduces chance of further fiscal stimulus and tax cuts, economists say