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What circumstance? The dollar early suddenly dropped The news or "culprits"

On Wednesday (Nov. 8) in early, the dollar index dropped suddenly, dollar/yen decline is particularly severe, analysts pointed out that a piece of news about American tax reform or earlier cause market volatility "culprit". Due to the heavy economic data and the international financial and economic events is not much, currency traders will continue to focus on the tax reform progress and trump's trip to Asia, this might be the key factors influencing the short-term currency movements.
According to the Washington post reported on Wednesday, said the four well-known draft legislation, the senate republican leader in the United States are considering delaying a year the implementation of main corporate tax cuts.

This change will make the corporate tax rate reduced to 20% from 35% in 2019, rather than the current legislation proposed by house republicans in 2018.
The Washington post, the report said delay tax cuts will save $100 billion, but is likely to encounter from Trump (Donald Trump) resistance. In addition, the provisions of the personal income tax is expected to exist significant differences.
Overseas well-known financial blogs Zerohedge, tax reform could delay the news hit to the market, the dollar against a basket of currencies, the dollar/yen, the first is the lever account selling currency from Tokyo.
The influence of the tax reform bill may be postponed implementation, the dollar index early rapid decline, the lowest once reached 94.77 level. The dollar index rose 0.17% in late trading on Tuesday, to 94.92.

(15 minutes $index charts)

In addition, the Washington post reported the introduction, the dollar/yen hit 113.65.

(Dollar/yen charts)

Bloomberg quoted a Asian currency traders reported that because of reports that the U.S. plan to reduce the corporate tax rate may be delayed, leverage accounts to sell dollar/yen in Tokyo.
The trader, said on November 2, below the low of 113.54 stop-loss selling more. Exporters and macro account sale is between 114.50/60 again.
Foreign well-known financial website Forexlive said on Wednesday that if the us tax reform bill cannot be implemented as scheduled, then the dollar will weaken. If is expected to further advance, the dollar will strengthen.
First released last week by the us house of representatives tax plan draft, if passed, this will be the United States since the 1980 s the biggest tax reform.
Republican lawmakers on Monday began to change the tax reform proposals, democratic, points out that the proposal is missing in the popular tax cuts, proved that the proposal is that taking the middle class.
Many people bet on tax reform bill will boost the economic growth and higher inflation expectations, and enhance market expectations of U.S. interest rates. But more and more people began to doubt whether the bill has a chance to become law.
International famous investment bank Morgan Stanley, Morgan Stanley, said the dollar's rally is nearing an end, because most of the good news surrounding the tax reform has been digested, and ignored the market risk associated with tax reform bill in congress approved.
The bank, a strategist at short dollar is expected to return, the reason is that if the tax bill draft Mired in Washington politics, then the current positions will provide space for exchange rate violent callback.
Morgan Stanley strategist Gek Teng Khoo wrote in a report: "nearing the end of a rebound in prices, we expect the us dollar. Our position tracking shows that the dollar bullish sentiment in the most extreme level since December 2016, this suggests that the dollar could be fixed."
Khoo said: "the short-term political risk is related to the tax reform that we continue to bearish on the dollar, most of the good news because the tax reform has been melted."
At the same time, the German commercial bank (at) analysts also can achieve high expectations of the market of the bill skeptical - even if it is approved by the congress enough.
Commerzbank analyst Ulrich Mr. Leuchtmann says: "in order to prevent new debt increased dramatically, tax reform plan was cancelled many exemptions. But it is politics. At the end of the battle, we still can see significant tax reform, just not currently planned.

Tokyo IG Securities senior currency strategist at Junichi Ishikawa said the U.S. yields $to support is insufficient, the uncertainty of the tax reform and the expectations of inflation was rising slowly on the yields.
Ishikawa said: "the dollar to maintain, need to quickly before Thanksgiving (Nov. 23) through tax reform bill, so as to provide support for U.S. yields."
Silicon Valley Bank, senior currency trader Minh Trang, said the dollar rally is suspended in the present level, over the U.S. tax reform proposals of uncertainty and the FOMC's future is still not clear, investors are turning against the dollar is part of the reason.
TD Securities (TD Securities) currency strategy research team said on Tuesday that data can make the motion of the dollar short-term slightly strong, but the bank believes the dollar index has already started to build, to seek in the dollar index rose to 95.0 in short.