The bullish bubble may have burst last week for the U.S. Dollar after the lack of clarity over U.S. tax reform raised issues about the aggressiveness of the Fed in raising rates in 2018 and 2019, driving down U.S. Treasury yields and encouraging investors

to book profits in the stock market.

December U.S. Dollar Index futures finished the week at 94.278, down 0.580 or -0.61%. The weakness in the dollar was spread almost evenly amongst the major currencies. The Japanese Yen rose 0.46%, the Australian Dollar increased 0.09%, the New Zealand Dollar was up 0.28%, the Euro posted a 0.46% gains and the British Pound gained 0.89%.

There were no major U.S. economic reports last week but with a rate hike in December a done deal, the focus was likely to be on tax reform anyway. The key story last week played out this way.

Disappointment with a tax bill put forth by U.S. Senate Republicans that would delay corporate tax cuts dominated the trade in all asset classes late last week. Risky assets such as the U.S. Dollar and U.S. equity markets lost ground while money flowed into safe haven assets such as gold and the Japanese Yen. The tone set on the weekly charts suggests the story may linger for some time.

According to CNBC, the Senate Republican’s bill to rewrite the tax code differed from their House counterparts’ plan. Like the House version, the Senate’s proposal would cut the corporate tax rate to 20 percent from 35 percent, but the Senate plan would delay implementation until 2019.

The politicians suggest this process is normal, however, the market action suggests investors want clarity.

Additionally, both plans call for a tax on $2.6 trillion in foreign profits held offshore by U.S. multinationals. The Senate wants that tax to be 12 percent for cash and liquid assets, and 5 percent for non-liquid assets. The House amended its bill on Thursday, going to 14 percent and 7 percent respectively.