The USD is more likely to go higher against EUR and JPY in 2018 as a result of Trump tax cuts. While this author may be right about corporate tax cuts facilitating additional dividends and stock buybacks...which got their real boost from 10 years of central bank policies, the net effect of tax cuts will be more money pumped into the U.S. and global economy and higher GDP. The real questions are how inflationary? as well as the effect on gold prices. Indeed, the FED is even more likely to continue raising rates and reducing it's balance sheet, and may even accelerate the process.
USD Has Little Enthusiasm for Tax Bill; EUR/USD, GBP/USD Gain
Despite the enthusiasm in US equities around passage of the tax reform bill, the US Dollar seems to have very little to say about it. After all, since it become clear at the start of the week that the reform bill would be passed by today, the US Dollar (via DXY Index) has endured a three-day slide. The fact of the matter is that the tax reform bill should be a bonanza for corporate earnings - which are already strong and trending positive - but not necessarily for jobs growth. Realistically, most of the funds repatriated or earned via higher revenue (thanks to lower taxes) will be given back to shareholders via ... (full story)