EURUSD: US House agrees on $40k SALT cap; dollar retreats

The US dollar has declined against the euro following news that US House Speaker Johnson reached an agreement on raising the State and Local Tax (SALT) deduction cap to $40,000. This breakthrough is seen as a significant step forward in passing the party's tax reform bill. Hardline conservatives had previously resisted substantial increases to the cap. A House vote is expected to take place tonight. The development has weighed on the dollar, allowing EURUSD to climb 0.2% to 1.0820. However, further upside may be limited as traders await more concrete progress. Immediate resistance is noted at 1.0840, with support at 1.0790. A conclusive break above 1.0850 could open the door to a test of 1.0900.