The dollar gave ground on Thursday and during the overnight Asian session as concerns about the proposed timelines for the Trump Administration’s ambitious tax reform and infrastructure spending plans encountered new hurdles. In comments on Thursday, Treasury Secretary Steven Mnuchin failed to provide new details regarding Trump’s tax plan aside from the fact that the Administration wants the measures passed before the August congressional recess. Despite reiterating the commitment to reform the current tax code, details were sparse apart from the oft repeated middle class tax relief and simplification of business tax reporting.
Furthermore, concerns about infrastructure spending being postponed alongside a smaller probability of March action on interest rates were enough to spur additional losses in the US dollar. Gold prices pushed higher, climbing to the highest point in months on the back of renewed uncertainty and dollar softness.