Daily Afternoon Report 28.09.2017

The U.S. dollar trimmed gains against its Canadian counterpart on Thursday, after the release of mixed U.S. economic reports, although news of a U.S. tax reform overhaul and a potential December rate hike by the Federal Reserve continued to support.

USDCAD was steady at 1.2472, off three-week highs of 1.2519 hit earlier in the day.

Data on Thursday showed that U.S. economic growth in the second quarter was revised up more than expected.

Separately, the U.S. Department of Labor said initial jobless claims increased more than expected last week.

The greenback had strengthened broadly following reports on Wednesday that U.S. President Donald Trump proposed the biggest U.S. tax overhaul in three decades.

The proposal still faces an uphill battle in the U.S. Congress, with the Republican Party divided over it and Democrats hostile.

The U.S. dollar was already supported by fresh expectations for a December rate hike by the Fed following hawkish remarks by the central bank’s Chair Janet Yellen on Tuesday.

Meanwhile, the commodity-related Canadian dollar benefited by higher oil prices on Thursday, as traders remained globally optimistic regarding the re-balancing of the market despite the release of mixed U.S. data.

The loonie was lower against the euro, with EURCAD adding 0.29% to 1.4699.