A quiet session Thursday in currencies after the fireworks we saw after the Fed interest rate increase on Wednesday. The dollar a little lower, foreign currencies a little higher. The bond market was soft. Trading volume was moderate.
Now that the question of rate increases has been answered for the time being, traders will look to economic reports in the U.S. and Europe to guage future value (dollar, Fx, bonds, equities). All eyes will be on Washington to see if the new administration can deliver on tax reform and regulatory cut back.
If the new regime produces on taxes and regulatory reform growth in the U.S. will improve. If the economy can return to the three percent growth more normal after the turmoil of 2008/2009 we see the finances of the U.S. improve.