Early Saturday morning the US Senate approved the most sweeping overhaul of US tax in three decades. Trump’s first major legislation eventually passed by the narrowest of margins - 51-49 votes. Republican Senate leader, Mitch McConnell, said, “We think this is a great day for the country.”
Supporters claim the bill delivers the largest tax cuts in US history. McConnell enthused, “People are going to be very, very happy. They’re going to get tremendous, tremendous tax cuts and tax relief, and that’s what this country needs.”
Democratic opponents say the bill will do nothing for those struggling on low incomes and will only benefit the wealthy and big businesses. They also claim the legislation, regardless of its intention, is muddled and poorly drafted. “I defy any member of the Senate to stand here, take an oath that they have read this and understand what in the world it means to businesses and families and individuals,” said Senator Dick Durbin.
Whatever the impact on the lives of US citizens, rich or poor, the markets view this as a trigger for growth and the dollar rose half a percent on Monday against a trade-weighted basket of currencies. ”The markets have tax bill fever this Monday, with the European indices jumping on the goodwill generated by the latest events in the US," said Spreadex analyst Connor Campbell. Gains were limited, though, by doubts that US interest rates would rise as a consequence.
Optimism in the US dollar furthered dealer's appetite for risk away from safe haven commodities like gold. At Monday resumption of trading gold hovered around the weekend low of £950.775.