Posted by editor on April 27, 2017

The dollar held steady against other major currencies on Thursday, after U.S. President Donald Trump unveiled his tax reform plan and as investors awaited the European Central Bank’s monetary policy decision later in the day.

EUR/USD was little changed at 1.0903, off a five-month peak of 1.0951 hit on Wednesday.

The dollar found support after Donald Trump confirmed that his tax reform plan would cut the income tax rate paid by public corporations to 15% from 35% and make major changes to the individual-tax system.

However, the one page plan offered little new information on how it would be paid for without increasing the deficit and is likely to face legislative hurdles.

Later Thursday, the ECB was expected to leave interest rates unchanged. Market participants were especially interested in the ECB President Mario Draghi’s press conference, scheduled shortly after the policy decision, for indications on the central bank’s future policy moves.

Elsewhere, GBP/USD gained 0.33% to 1.2886, after hitting a six-month peak of 1.2915 overnight.

USD/JPY rose 0.28% to 111.37, off a one-week trough of 111.03 reached earlier in the session, while USD/CHF was almost unchanged at 0.9931.

The Bank of Japan kept monetary policy on hold on Thursday, in a widely expected move.

The Australian and New Zealand dollars were steady, with AUD/USD at 0.7471 and with NZD/USD at 0.6889.

Meanwhile, USD/CAD slipped 0.29% to 1.3581, after climbing to fresh a 14-month high of 1.3648 overnight after the U.S. President said he does not plan to scrap the North American Free Trade Agreement (NAFTA) but renegotiate it instead.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 98.86.