Another busy day of announcements sees both the US and UK come into focus as both nations release significant economic data.

The EUR/USD pairing fell below the $1.20 mark to sit at $1.1964 at present. It is likely that a strengthening of the USD, rather than a weakening of the Euro, is the cause of the fluctuation. The stronger USD comes on the back of Treasury Secretary Steve Mnuchin’s interview that he gave overnight where he talked about the US economy. Most were interested in what he had to say about Donald Trump’s tax plan, which includes cutting the corporate tax rate significantly. Mnuchin declared that the tax reform plan will be passed before the end of the year. What was also of great interest is that Mnuchin said that the government was looking at backdating the tax cut to January 1, hoping that the extra funds that businesses receive will help spur economic growth.

All three major US indexes finished the trading session in positive territory, up around a third of a percent on average. The Dow ended the session on 22,118.86 (+61.49 points), S&P 500 2,496.48 (+8.37 points) and NASDAQ 6,454.28 (+22.02 points). This is mainly due to talk surrounding Donald Trump’s tax plan European stocks were mainly up overnight, the DAX up 49.53 points, or 0.4%, to 12,524.77. All other major European stocks finished with modest gains, except the FTSE, which went in the opposite direction, posting a small loss of 12.90 points, or -0.17%, to sit currently at 7,400.69.

Gold finished mainly flat, still sitting in the low 1,330 range, presently at 1,335.50. Investors seem to be leaving gold and piling into equities for the chance of higher returns. The Treasury Secretary’s interview last night is sure to sway investors back into equities as businesses love lower taxes.

Turning to the events of today, the US is publishing PPI & Crude Oil data, which is the most significant US data to be released tonight. Meanwhile, the UK is reporting Average Earnings Index figures, which is vital to growth in the economy as it reflects wage growth for employees.

Other data today:

US – Core PPI, Federal Budget Balance

UK – Claimant Change, Unemployment Rate

Europe – German Final CPI, German WPI, Swiss PPI, European Employment Change & Industrial Production

Australia – Westpac Consumer Sentiment