Forex today: firm data signals supporting the case for a Fed hike in December


Share:

Forex today had the dollar rally 0.5%, the US yields higher and firm data signals supporting the case for a Fed hike in December.

The US 10yr yields were extending the Friday's close positive session to 2.37%, although took a hit overnight in London before consolidating around 2.32% with ISM manufacturing data supporting US markets. Equities were firmer on the day as well with the S&P 500 scoring fresh new highs despite the Las Vegas disaster, following on from the European bourses that were also firm despite the events in Spain/Catalonia. 

Meanwhile, the Fed fund futures yields continued to price the chance of a December rate hike at 77%. Oil fell, with WTI sliding to  $50/bbl, while OPEC production was rising 120k bpd during September due to the output recovering in Nigeria and Libya. The safe-haven precious metal, Gold, fell 0.4%. Copper was lower -0.20%.

Despite the Spanish political climate, the euro was relatively firm leading into the US session and underpinned by ECB's Praet advocating for very cautious tapering of QE/APP. EUR/USD ended -0.69%, supported at 1.1730 with a 1.1760 breach in London and Early NY.  GBP/USD ended down -0.92% as the UK Conservative Party conference gets underway this week while UK/EU deadlock weighs over the pound. USD/JPY, +0.21%, still unable to hold rallies above the 113 handle. EUR/JPY was weak despite a strong performance on Wall Street, -0.44%. The Antipodeans were lead lower by Kiwi -0.46% and the Aussie -0.13%, although both were making a rebound intrasession from the lows of  AUD 0.7796 (a six-week low) to 0.7840 and 0.7168 to 0.7218 for the bird. AUD/NZD ranged sideways between 1.0855 and 1.0880.

Risk events for Asia today

Analysts at Westpac offered their outlook for the event risks in Asia:

"Australia: The RBA policy decision is widely expected to be on hold. Markets are pricing in the likelihood of hikes in 2018 but Westpac remains of the view that rates are on hold. Aug dwelling approvals are expected by Westpac to rise 2.0%. Approvals are still down 13.9% from their peak due to a high-rise drop but stronger construction related housing finance suggest a further lift in non-high rise activity.

NZ: NZIER business confidence survey may be affected by pre-election uncertainty. We will be interested in the relative industry performance, as well as capacity constraints and pricing intentions which may give clues about the inflation outlook. The GDT dairy auction is priced by futures to result in a 6% rise in WMP."

Key notes from US session 

From Catalonia to Las Vegas, violence dominates the headlines but little market impact - ANZ

US ISM: recovery continues but strong numbers partly due to hurricanes - Danske Bank

Fed's Kaplan: We are going to have to look hard if we should raise rates in December

Fitch: Catalonia's secession from Spain is very unlikely

ECB's Praet: When normalisation of monetary policy comes it has to be prudent

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD consolidates at three-week lows near 1.0800 Premium

EUR/USD consolidates at three-week lows near 1.0800

EUR/USD bottomed at 1.0775, the lowest level since November 15, and then rebounded towards 1.0800. The US Dollar remains resilient in the market despite lower yields and mixed US data. On Wednesday, more job figures are due with the ADP report and Unit Labor Costs data, ahead of Friday's NFP.

EUR/USD News

GBP/USD holds to losses around 1.2600

GBP/USD holds to losses around 1.2600

GBP/USD dropped further on Tuesday, reaching a one-week low below 1.2600 amid a stronger US Dollar. The Greenback holds firm even as the US Treasury yield slides. More US jobs data is due on Wednesday with the ADP report.

GBP/USD News

Gold extends slide, more pressure seen under $2,010 Premium

Gold extends slide, more pressure seen under $2,010

Following Monday's decline, Gold struggled to stage a convincing rebound and retreated below $2,020 in the second half of the day on Tuesday. Although the benchmark 10-year US Treasury bond yield is down more than 1%, renewed USD strength doesn't allow XAU/USD to limit its losses.

Gold News

Top 5 tokens trending alongside Bitcoin: ORDI, STX, LUNC, PEPE, CFX

Top 5 tokens trending alongside Bitcoin: ORDI, STX, LUNC, PEPE, CFX

Bitcoin price crossed the $41,400 level early on Tuesday. The largest cryptocurrency by market capitalization extended its gains and continued its rally, after yielding 12% weekly gains for holders. The anticipation surrounding Spot Bitcoin ETF approvals is one of the key catalysts fueling the hype among BTC holders.

Read more

Nio Stock Earnings: NIO holds onto 3% gain despite Moody cutting China outlook

Nio Stock Earnings: NIO holds onto 3% gain despite Moody cutting China outlook

Nio (NIO) stock's initial 5% gain on Tuesday has transitioned to a 3% gain near $7.55. The Chinese electric vehicle (EV) manufacturer released third-quarter earnings that showed sales of higher margin SUVs surged 258% from the most recent quarter and 64% from a year ago. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures