Forex news for New York trade on Nov 28, 2017:
- FT and Telegraph report Brexit price tag deal close
- Senate budget committee votes to advance Republican tax plan
- Powell: There is no indication in wages that labor market is even hot
- Powell: Case for December rate hike is coming together
- Powell Q&A: We don't see wages signaling a tight economy
- North Korea fires ballistic missile
- Iraq oil minister says supports oil supply cut extension
- US sells 7-year notes at 2.236% vs 2.215% WI bid
- BOC's Wilkins: We started to raise rates at exactly the right time
- BOC's Poloz: Policy changes affecting housing finance are clearly step in right direction
- BOC sees moderate risk that housing prices correct in overheated markets
- Nov Richmond Fed manufacturing index +30 vs +14 expected
- Nov US Conference Board consumer confidence 129.5 vs 124.0 expected
- Fed's Dudley says opaque clearing of Treasuries a major issue
- FHFA US Sept house price index +0.3% vs +0.5% m/m expected
- S&P Case-Shiller Sept US 20-city house price index 6.19% vs +6.04% y/y expected
- Oct US wholesale inventories -0.4% vs +0.4% expected
- US Oct advance goods trade balance USD -68.3 bln vs -64.9bln exp
- Canadian Oct industrial product price +1.0% vs +0.5% expected
- US Oct building permits revised up to 7.4% from 5.9%
Markets:
- S&P 500 up 25 points to record 2626
- Gold down $2 to $1292
- US 10-year yields up 0.5 bps to 2.33%
- WTI crude down 20 cents to $57.91
- GBP leads, EUR lags
It looks increasingly likely that Congress will pass the tax bill and that helped stocks to a fresh record and lent a bid to USD/JPY. The party was briefly interrupted by a North Korean missile launch that sent a shudder through markets. The dip was bought when the missile landed off shore and it was off to the races.
Sterling trades were lively as the chart below shows.
To add an update, cable eventually hit a session high at 1.3387, more than 165 pips from the session lows and that keeps the recent uptrend intact.
Some EUR/GBP selling was part of the reason the euro struggled. It held near 1.1900 early but the enthusiasm in the US and Britain eventually swamped it and it fell 55 pips to 1.1843 on the day.
USD/CAD wasn't in the thick of the volatility but Poloz left a few hints that the Bank of Canada wants to wait and see how the economy reacts to the latest hikes before he acts again. Oil was also on the soft side ahead of tomorrow's OPEC decision. It was a slow move but the pair added 50 pips on the day to a one-week high of 1.2825.
AUD/USD climbed early and hit 0.7620 but limped lower later to 0.7596 but finished virtually flat. It was a similar story for the kiwi. It had been higher for most of the day but sellers arrived late in the broad USD rally and the pair limped to 0.6900.
