Dollar extends earlier losses with all eyes on U.S. tax reform billDollar extends earlier losses with all eyes on U.S. tax reform bill

Investing.com – The dollar pushed lower against other major currencies on Thursday, after the release of disappointing U.S. jobless claims and as uncertainty over the fate of a major U.S. tax reform bill continued to weigh.

The U.S. Department of Labor reported that initial jobless claims increased more than expected to 239,000 last week, dampening optimism over the strength of the job market.

Investors also remained cautious as a U.S. Senate tax-cut bill, which differs from one in the House of Representatives, was set to be unveiled on Thursday.

The Washington Post reported on Tuesday that Senate Republican leaders were thinking of postponing the implementation of major corporate tax cuts to comply with Senate rules.

Traders are concerned over any potential delays in the implementation of the tax cuts or the possibility that proposed reforms end up being less drastic than hoped for.

Market participants were also monitoring President Trump’s trip throughout Asia. In a meeting with Chinese counterpart Xi Jinping on Wednesday, Trump said he aims to address what he considers to be unfair practices from China that have led to a mismatch of benefits from U.S.-China trade.

The president went on to say that the current relationship between the two countries is a “very one-sided and unfair one.”

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.25% at 94.53 by 10:50 a.m. ET (14:50 GMT).

EUR/USD rose 0.26% to 1.1625, while GBP/USD held steady at 1.3111 as Brexit negotiations were set to resume on Thursday with hopes of breaking a deadlock before the end of the year.

Elsewhere, USD/JPY slipped 0.22% to 113.64, while USD/CHF fell 0.26% to 0.9976.

The Australian and New Zealand dollars remained weaker, with AUD/USD down 0.21% at 0.7664 and with NZD/USD shedding 0.29% to 0.6947.

Earlier Thursday, the Reserve Bank of Australia left its benchmark interest rate unchanged at 1.75% at the conclusion of its monthly policy meeting, in a widely expected move.

The central bank also projected a possible rate hike for the second quarter of 2019, three months earlier than previously expected.

Meanwhile, USD/CAD fell 0.23% to trade at a two-and-a-half week low of 1.2699.

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