Dollar jumps on US tax-cut passage

The dollar advanced against major rivals on Monday after US senators snuck through a bill on tax cuts this weekend.

Elsewhere, European stock markets rebounded and Asian indices diverged as traders waited for a Brussels summit on Brexit and learned that a former Donald Trump aide had agreed to cooperate with an investigation into Russian electoral interference.

Around 10:30 GMT, the major European stock markets recorded gains of about 1% compared to Friday's closing levels.

Earlier in Asia, Hong Kong ended higher, but there were declines for Tokyo and Shanghai.

Oil prices declined after Friday's rally in reaction to crude oil producers' decision to extend a limited production period.

Bitcoin hit a new record high on Monday, at $ 11,845.33, after an American regulator pioneered futures in the unit to negotiate on main markets.

The Chicago Mercantile Exchange – the world's largest futures market – announced that it would launch futures on December 17.

"The fact that CME – the biggest kid in the block – moves early into the cryptocurrency will force other big trades to follow suit in the fear of not missing," Shane Chanel said. at ASR Wealth Advisers. ]

The unit has been multiplied by 15 since the beginning of the year.

As part of the foreign exchange market, "the US dollar started the week ahead after … the tax plans were approved, paving the way for a broad fiscal stimulus for the US economy," notes Neil Wilson, senior market analyst at ETX Capital.

After the marathon negotiations in Washington, lawmakers finally adopted controversial reforms of the tax system, which, according to the president, will trigger the world's largest economy.

The greenback has strengthened against the yen, the euro and the pound, but traders remain reluctant as both houses of Congress have to reconcile their bills before sending a final draft in the White House, while analysts warn of political risk.

"If the legislation is ratified quickly, there will likely be another rebound of the dollar, but the more the dollar loses, the more the dollar will sell, because the political uncertainty has caused the defeat of the dollar in 2017", said Stephen. Innes, Asia-Pacific Trade Manager at OANDA.

The advance of the dollar contributed to the rise in the stock price of European exporters, while the pound sterling also experienced a period of uncertainty over the Brexit.

British Prime Minister Theresa May was hoping to reach an agreement with EU leaders on divorce on Monday, as the Irish border remains the main stumbling block as months of tense negotiations reach a decisive moment .

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