Senate passed Trump’s tax code overhaul bill

US stock market rally continued and the ICE US dollar index rebounded last week as the Senate approved Republicans’ tax plan Saturday with 51 to 49 vote. The SP 500 advanced 1.5% and the ICE dollar index added 0.15% for the week.

The ICE dollar index advanced in every session last week except Thursday and Friday. It gained 0.2% Monday after Dallas Fed President Kaplan’s hawkish comment an interest rate hike “will likely be appropriate, in the near future”. The dollar index rose 0.3% on Tuesday as Jerome Powell, President Donald Trump’s nominee to run the Federal Reserve, indicated he expects to stay on the course set by the current Fed chief Janet Yellen. The dollar added 0.1% Wednesday reverting to downturn next two sessions.

The SP 500 advanced in all sessions last week except Monday and Friday. 3 It closed at record high jumping 1% Tuesday as Senate Budget Committee voted 12-11 for the Republican tax bill. The broad market closed at a fresh record high on Thursday gaining 0.8% as the core personal consumption expenditure index, excluding volatile food and energy prices, rose 0.2% in October, in line with forecasts.

Central bank decisions in Australia and Canada on Tuesday and Wednesday as well as US labor market report on Friday are the major economic events this week. While central regulators are not anticipated to change interest rates, their assessments of growth prospects and risks may cause exchange rate volatility. Also in focus will be Brexit talks with European Commission expected to make its recommendation on Wednesday whether sufficient progress has been made to move negotiations on to the future relationship.