Forex news for New York trade on December 16, 2020:
- FOMC statement: Will continue pace of bond buys until 'substantial' progress on goals
- Full FOMC statement from the December 16 rate meeting
- Powell opening statement: We will continue to provide powerful support until the recovery is complete
- Powell Q&A: We won't associate 'substantial further progress' with numbers
- A look at the Fed's central tendencies for GDP, employment and inflation
- US November advance retail sales -1.1% vs. -0.3% estimate
- Brexit update: There is a 'landing zone' on level playing field, fisheries still tough
- McConnell: 'Major headway' has been made on stimulus deal
- Canada November CPI +1.0% y/y vs +0.8% expected
- EIA weekly oil inventories -3135K vs -2200K expected
- US business inventories for October 0.7% vs. 0.6% estimate
- US December NAHB housing market index 86 vs 88 expected
- US Markit December prelim service PMI 55.3 vs 55.9 expected
- CME to launch Ether futures
- Johnson spokesman: No deal still most-likely outcome but we've made progress
- Bitcoin breaks above $20,000 for the first time ever.
- Switzerland named currency manipulator in Treasury report
Markets:
- EUR leads, CAD lags
- Gold up $10 to $1864
- US 10-year yields up 1.5 bps to 0.922%
- S&P 500 up 8 points to 3702
- WTI crude oil up 21-cents to $47.81
The lack of any new action from the FOMC led to a kneejerk higher in Treasury yields and the US dollar but it was short-lived. Powell emphasized the ultra-dovish stance of the FOMC and no rush to raise rates and that sparked a complete reversal.