House passes the Republican tax cut plan

US stock market and ICE US dollar index correction continued last week as the House passed the Republican tax cut plan. The SP 500 slipped 0.2% and the ICE dollar index fell 0.8% for the week.

The ICE US dollar index retreated in every session last week except Monday and Wednesday. 2 It lost 0.7% on Tuesday as euro rallied 1.1% after Germany’s statistics agency reported German economy grew at above expected 2.8% on year rate in the third quarter. The dollar index slipped 0.3% Friday following a report that US special counsel Robert Mueller’s team had issued a subpoena to Trump’s campaign in mid-October.

The SP 500 ended lower in all sessions last week except Monday and Thursday. 3 It fell 0.2% Tuesday after Senate Republicans linked repealing Obamacare individual mandate to their tax bill. This made it more difficult to gain sufficient votes for Congress approval. The SP 500 lost 0.6% Wednesday as Republican senator Ron Johnson said he wouldn’t vote for the tax package as it benefits big corporations more than smaller companies. It advanced 0.8% Thursday as the House passed the Republican tax cut plan. The SP 500 retreated 0.3% Friday on renewed political uncertainty.

US tax reform progress, Federal Reserve and European Central Bank meeting minutes, as well as UK’s economic growth update with euro-zone economic activity reports are the major events expected to drive markets this week. Fed meeting minutes are due Wednesday. Euro-zone purchasing manager’s index reports will be released Thursday morning followed by UK GDP second estimate and ECB policy meeting accounts.