Forex news for US trading on November 8, 2017:
- RBNZ holds rates at 1.75%, as expected
- Full statement from the RBNZ November 2017 policy meeting
- US Senate will release its tax bill on Thursday and it may include 7 tax brackets
- Yellen is thinking about staying on as a Fed Governor
- Congressional Budget Office: House tax bill would add $1.7T to deficit over 10Y
- US sells a $23B 10 year notes at high yield of 2.314%
- BOE McCafferty: UK economy remains uncertain in terms of Brexit, other factors
- Treasury Secretary Mnuchin: Trump would like to kill the healthcare mandate
- It's been one year since the US election, here is how currencies have performed
- DOE inventory data shows crude oil +2.237M vs -2.454M est
- Canada Sept building permits +3.8% vs +1.0% expected
- Canada Oct housing starts 222.8K vs 211.0K exp
Markets:
- Gold up $6 to $1281
- WTI crude down 41-cents to $56.79
- US 10-year yields up 1.4 bps to 2.32%
- S&P 500 up 4 points to 2594
- NZD leads, GBP lags
There was talk the RBNZ could take out any hint of hikes in 2019 forecasts, instead they moved up the timeline for hiking by a quarter and that sent the New Zealand dollar a quarter-cent higher to 0.6950.
Otherwise, the pound was a big mover before New York trade after cabinet minister Priti Patel's trouble and resignation in another sign of strain on May's government. The regular Brexit worries and lack of progress on talks hurt as well. Cable fell as low as 1.3087 but tracked back to 1.3118 after London closed up shop.
EUR/USD made a pair of lower lows on the intraday chart but the 2-3 pip dips below the lows had no follow through. So it was a chop around 1.1600 throughout the day.
USD/CAD had a negative bias. A few of the twists and turns were driven by oil. A bearish inventory was met by a dramatic round of buying and WTI hitting $57.92 but the gains faded. USD/CAD headed towards 1.2750 in early trade but skidded back down to 1.2722 to finish near a session low.
AUD/USD trading was bland around 0.7680 and barely budged on the RBNZ news.
The day ahead is a big one for US tax reform so that should add a dose of volatility.
