Dollar gains on U.S. tax cut progress- Brexit deal eyed

Published 04/12/2017 in Business, Economy & Finance

Dollar gains on U.S. tax cut progress- Brexit deal eyed
A woman walks in strong wind caused by Typhoon Lan, past an electronic board showing the graphs of the recent movements of Japan’s Nikkei average outside a brokerage in Tokyo, Japan, October 23, 2017. REUTERS/Issei Kato

SYDNEY (Reuters) – The U.S. dollar bounced to a two-week top on Monday and S&P futures jumped as traders marked the passage of a Senate tax bill over the weekend, a move that raises the risk of more aggressive rate hikes in the world’s largest economy.

Pointing to a firm start for European shares, FTSE futures FFIc1 were up 0.7 percent.

Traders will be focusing their attention on a meeting scheduled for British Prime Minister Theresa May and EU Commission President Jean-Claude Juncker to work on a Brexit deal.

The euro EUR= slipped 0.15 percent, while the British pound GBP= was steady amid media reports that an agreement was near on the terms of the Brexit divorce.

Asian shares started the week with a whimper.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS hovered near more than one-month lows on fears U.S. policy tightening could suck liquidity from emerging markets and derail global growth.

Bitcoin BTC=BTSP hovered close to an all-time high of $11,800 set on Sunday after the U.S. derivatives regulator allowed CME Group (CME.O) and CBOE Global Markets (CBOE.O) to list bitcoin futures.

The cryptocurrency was last trading around $11,375 on the Luxembourg-based Bitstamp exchange.

In commodity markets, U.S. crude CLc1 was off 40 cents at $57.96. Brent crude LCOc1 slipped 31 cents to $63.42, drifting away from a near 2-1/2 year peak of $64.65 touched last month.

Spot gold XAU= was off 0.45 percent to $1,274.4 an ounce.

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