(21 DECEMBER 2017)DAILY MARKET BRIEF 1:US tax reform not dollar positive

The greenback continued to weaken for three straight sessions, as traders rotated into EUR and emerging market currencies.

The Trump tax cut’s positive effect on equites is beginning to fade. Improvements in corporate earnings have already been priced in; bond markets are worried by the government debt needed to fund the cuts. Tax credits for renewable energy and electric cars are preserved, while the new tax code will decrease demand for gas and oil.

By Peter Rosenstreich