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By xemarketanalysis November 17, 2017 1:49 pm
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    XE Market Analysis: US Dollar Ends on a Weak Note


    • US Dollar slips on a report that the Special Counsel subpoenaed Trump's election campaign for documents.
    • Canadian inflation drops to 1.4% and weakens the Loonie.
    • US Dollar slips as investors watch for progress on tax reform bill.
    • Bitcoin hits an all-time high on software upgrade rumors. 


    The Dollar index is set to close the week below the technically important 94 level, reflecting concerns over a report by the Wall Street Journal that Special Counsel Robert Mueller's investigators had subpoenaed Trump's election campaign for documents.


    The US Dollar is weaker against a trade-weighted basket of currencies as investors and traders watch for progress on the tax bill going through currently. The focus for the Dollar now shifts to the meeting minutes from the FED's last meeting which are due to be released on Wednesday next week. 


    The Pound continues to see large daily swings, but are contained within well-established ranges against its major counterparts. After a meeting between PM May and EU Chairman Donald Tusk, he said there is no deadlock in Brexit talks and there is still a chance to move on to next phase of Brexit talks in December.


    The Euro is better supported and has managed to hold on to some of its gains this week, but will need to clear the 1.1850 level versus the Dollar to break out of its range. 


    The Loonie is weaker today after the release of lower than expected inflation numbers for September. The domestic inflation rate dropped to 1.4% from 1.6% in the previous month. This should put the brakes on any planned interest rate hikes from the Canadian central bank. 


    The Aussie Dollar is weaker today and looks set to end the week significantly lower than this time last week. The Aussie has been aggressively sold this week because of the narrowing in yield differential, leading to a lack of demand for the currency as a carry trade. 


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