Dollar Loses Traction after Jones Win

The US Dollar Index edged away from the recently struck 4-week peak after news that Trump favored Senate candidate Roy Moore lost in his bid for the open seat to Democrat Doug Jones. The seat was a hotly contested one and the battle was often bitter and rancorous, but new evidence of Moore’s past, including inappropriate interaction with young women, gave the Democratic party newfound hope for a win. That leaves the GOP with one less seat in the Senate, though they continue to maintain a razor thin majority.

As reported at 10:56 am (GMT) in London, the EUR/USD was trading at $1.1751, a gain of 0.12%; the pair earlier hit a peak of $1.17627 while the low for the session is at $1.17340. The GBP/USD was up 0.24% and trading at $1.3348, off the session high of $1.3368. The USD/JPY was down 0.15% and trading at 113.365 Yen; the pair has ranged from a low of 113.100 Yen to a peak of 113.575 Yen in today’s session.

Outlook for GOP Agenda Dims

For Republicans, the win by Doug Jones make it that much harder to push through Donald Trump’s controversial plans to reform the tax code and, later, reform what Speaker of the House Ryan has been calling “entitlements.” The vast majority of Americans are not in favor of Trump’s plans to decimate social lifelines, including Medicare and Social Security. The newfound uncertain, especially, could make it an uphill battle for the renegotiated tax reform plan which has been heavily criticized for raising rates for the middle class while slashing rates for rich Americans and corporate America.