Euro Stays Above $1.17 level

The euro exchange rate against the US dollar has not changed much today. The EUR/USD pair is trading at 1.1736 level. The decline in the euro strengthened after the referendum in Catalonia. It is expected, that the political crisis in Spain will not continue to pressure the European single currency, given that the referendum is viewed as a local issue for Spain, and not for the Eurozone as a whole.

The US President presented his tax plan. Under this proposal, the corporate tax will be reduced from 35 to 20%, and the personal income tax will be significantly reduced. Trump says that the reduction will lead to strong economic growth. But still, Moody's stated that the tax plan is negative, arguing that tax cuts will not be compensated by a reduction in spending, which will lead to a higher deficit of the federal budget and debt.