The US dollar is under pressure against the major currencies today as fears grow over the possibility of tax reform as well as disastrous results for Trumps political party in the elections.

As with most of the US president’s policies, the tax reform bill has hit headwinds between political members in the US and it now seems that the tax reform in its current state will not pass.

The US dollar has made significant progress in the last week or so against the majors as analysts had been predicting there was main stream support to pass the tax legislation but now that it has become clear this is not the case, the US dollar is bound to give up some of its recent gains.

“The initial phases of discussions within the House have brought up a lot of divisions and problems, so the House version itself is going to change before we’ve even got wind of what the Senate version is going to be,” said MUFG’s European head of global markets research in London, Derek Halpenny.

Another factor hurting the green back today was the results of  elections for governor in west Virginia and new Jersey where in both cases, democratic candidates won and were elected by wide margins which is seen as a rebuke of Donald Trump as the republican party had previously held both positions.

Although there was a good voter turnout in both elections, it seems that republicans changing parties was the turning point which is a scary thing for Trump who has only been president for one year

“I do believe that this is a referendum on this administration, democrats turned out tonight, but I’m pretty sure there were some Republicans who spoke loudly and clearly tonight as well.” Noted Representative Scott Taylor, a Republican from Virginia Beach