Forex news for New York trade on September 20, 2017:
Federal Reserve headlines:
- FOMC leaves rates unchanged and announces taper, as expected
- How the Federal Reserve forecasts changed
- A comparison of the old dot plot and the new dot plot
- The FOMC statement for the September 2017 meeting
- Three things we learned from Yellen's press conference
- Yellen says she hasn't met with Trump since early in his term
- Yellen: Resumption of forward guidance would be available if economy materially weakened
- Trump actions as President may be under investigation by Mueller - report
- Yellen Q&A: The shortfall of inflation this year is more of a mystery
- Yellen opening statement: Q3 growth to be held down by hurricanes
- How Federal Reserve expectations changed after the latest statement and dot plot
News:
- US August existing home sales 5.35m vs 5.45m expected
- US ambassador to the UN tones down everything Trump said yesterday
- Full Senate will consider Graham-Cassidy healthcare bill next week
- OPEC technical committee sees compliance in August at 116%
- Russian oil minister says there is no official proposal for further output cut
- Iran's Rouhani says it would be a pity if deal destroyed by rogue newcomers to world of politics
- Regling says the EU has gone far enough, don't need full fiscal union
- US EIA weekly oil inventories +4591K vs +3900K expected
Markets:
- S&P 500 up 2 points to 2508
- WTI crude up $1.06 to $50.69
- US 10-year yield up 4 bps to 1.87%
- NZD leads, EUR lags
The dot plot was the big story of the day as it continued to show high expectations for a rate hike before year end. The market had sold dollars in the hours leading up to the decision and was immediately caught wrong-footed.
USD/JPY jumped to 112.50 from 111.25. EUR/USD crashed down to 1.1870 from 1.2010. Before the quick moves there were whipsaws to the upside that tripped stops and frustrated traders.
Cable touched 1.3650, which is a new cycle high but finished just below 1.3500. The next move will be driven by the dollar, especially if a tax plan comes to fruition.
Earlier in the day, the commodity bloc was bid on a variety of factors but it mostly unwound on the Fed headlines. Still NZD and AUD managed to hold onto a gain on the day.
