TD is looking to 'buy the rumor, sell the fact' on US tax reform - TD

TD on the next trade

TD FX Strategy Research discusses the USD outlook, and notes that the currency has eked out its first weekly gain in three weeks, despite the choppy price action under the hood.

"The Senate pass their version of the bill over the weekend, offering some tails winds to the $. The tax proposal still needs to get reconciled between the House and the Senate, increasing the risks that passage remains a 2018 story.

At the very least, a "buy the rumor, sell the fact" outcome on tax reform together with renewed interest on the Russia probe are likely to derail any upside momentum in the $," TD argues.

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