Yesterday, Donald Trump presented a bill on tax reform
In general, the reform involves the easing of tax pressure for rich and super-rich families and those companies that have so-called "end-to-end taxation". The rate is cut from 39.6% to 15.0%. For rich families with an income of more than $470K, the rate is reduced from 39.6% to 35.0%. The tax to a very large heritage (from $11 million) is removed.
Critics of the reform have already considered Trump's own interest in this initiative
Trump Organization suits all these conditions and its tax savings amount to $200 million per year. But companies that have brought production abroad or have changed their jurisdiction will pay taxes on a general basis. In this case, the budget losses are estimated at $150 billion per year.
Also on Wednesday, Trump initiated the country's exit from the North American Free Trade Agreement (NAFTA). In Congress, the struggle for taxes and trade agreements is expected to be serious, and this tension is negative for the US dollar.
Today, in the US, the volume of durable goods orders is expected to decrease from 1.8% to 1.2%. The core durable goods orders can show the decrease from 0.5% to 0.4%. The wholesale inventories are projected to decrease from 0.4% to 0.3%. The pending home sales can also show the decrease, -1% against 5.5% in March.
How we trade binary?
In our view, the price will continue upward if reach 1.2890 level. We would buy Call binary options if a one hour candle opens and closes above the 1.2890 level. If our first target is not reached and the price goes below 1.2830, the first scenario would be invalidated. We would buy Put options if a one hour candle opens and closes below the 1.2830 level.
Target price: 1.2890
Expiry time: 20:00 GMT