Forex news for US trading on January 17, 2018
- Bank of Canada hikes interest rates to 1.25% from 1.00%
- Poloz: Today's hike validates what we saw in the marketplace
- BOC's Wilkins: Wages don't appear to be source of inflation at this time
- The full statement from the Bank of Canada
- Beige Book: Economy continued to expand, some firms expect wage rise
- US Dec industrial production mm 0.9% vs 0.5% exp
- Fed's Kaplan makes a hawkish shift
- Kaplan: Sees 2.50%-2.75% GDP growth this year, a bit slower next year
- Fed's Evans: Expect strong growth this year and next
- New Zealand REIZN house sales -10.1% vs -8.9% prior
- Senate committee sets Goodfriend's confirmation hearing date for Jan 23
- Trump actually said some negative things about Russia
- Trump says he hopes there won't be a trade war with China but "if there is, there is"
- Germany's Merkel says key points of coalition deal can not be renegotiated
Markets:
- Gold down $9 to $1329
- WTI crude up 15-cents to $63.88
- S&P 500 up 26 points to 2802
- US 10-year yields up 3 bps to 2.57%
- GBP leads, JPY lags
It's been a wild day in just about every market out there. The dollar was all over the place as it sank for most of the day then started on a big reversal after the Beige Book.
EUR/USD climbed up to 1.2290 from 1.2200 and it looked like the dollar-rout was back on but in the past few hours it's completely turned around and the euro is slated to close at the lows at 1.2182.
USD/CAD was a big focus on the day and the BOC added an extra but of drama to the US trade. The pair jumped on the headlines, sensing a dovish hike but a second long and the BOC press conference made the market a bit less confident and the pair dropped back to 1.2375 from a high of 1.2520. But along with everywhere else, the dollar is in a bounce at the moment and it's back up to 1.2435, which is basically flat on the day.
USD/JPY finished at the best levels of the week at 111.30 after finding support a few times near 110.60. Rising Treasury yields are helping to underpin USD/JPY and the US dollar in general.
