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The dollar has opened in London about 1% higher following the Fed's announcement yesterday, which confirmed the start of a QT program, as had been widely anticipated, but showed via the dot plot that another rate hike is in the works before year-end followed by another three hikes in 2018. Read more
FX trade was quiet through the morning session, with activity muted ahead of the FOMC announcement. The dollar rose, then fell, then rose again following the Fed, as it detailed the kickoff of its QT program, as widely expected, and left another 2017 rate hike on the table. Read more
Today, the Federal Reserve issued their latest monetary policy statement, keeping rates at 1%-1.25%. They describe the economy as expanding moderately: the labor market continues to grow, households are spending and investment is picking up. Read more
OVERVIEW NZD is out-performing on latest poll showing ruling National Party ahead of Labour. GBP boosted by strong August retail sales fails to hold gains. AUD testing higher after comments from the RBA's Luci Ellis on the global economy. Brent crude oil prices at highest since July 2015. HIGHLIGHT The market pricing for US interest rates out to June next year is only pointing to one interest rate with the June 2018 contract at 98.6. Read more
Hurricane Harvey almost certainly had an effect on the August housing report, and Irma will like join it in affecting the September report as well. Here is the Census Bureau's statement, in relevant part, on the effect of the hurricanes: They specifically note in the same statement that they made no special adjustment in the reported numbers as a result. But, first things first. Read more
The dollar traded generally softer as markets anticipate the Fed's policy announcement and statement. The pound was notable today as it rallied strongly on above-forecast retail sales data out of the UK, but subsequently gave back most of its gains as the latest tri-monthly BoE agents survey of anecdotal activity made for less rosy reading.[EUR, USD]EUR-USD lifted to a nine-session high at 1.2020, despite a report yesterday of there not being a consensus among ECB policymakers about when to begin tapering. Read more
The euro has remained bid, despite a report of there not being a consensus among ECB policymakers about when to begin tapering. EUR-USD logged a nine-day high at 1.2020 and EUR-JPY remaining buoyant, although below the 22-month high seen yesterday. USD-JPY, meanwhile, has settled to a consolidation after rallying quite strongly over the last week amid a risk-on backdrop in global financial markets, which the yen tends to correlate inversely to, and as markets anticipate the Fed and BoJ policy announcements, due today and tomorrow, respectively. Read more
OVERVIEW US housing starts fell for a second straight month, and building permits rise. German ZEW survey stronger than expected, economic sentiment index rises to 17.0 from 10.0 in August. GB Pound jumps 0.5 cents versus US Dollar after reports on Boris Johnson resign. Euro slips after ECB sources say board split on setting an end date for bond purchases. Aussie Dollar sees limited impact from upbeat RBA minutes. HIGHLIGHT The US Dollar is down against an overwhelming amount of currencies as the unexpected Trump victory rally ended abruptly. Read more
The dollar stumbled some early in the session in N.Y. on Tuesday, though was little impacted by the combination of firmer import prices, a wider current account deficit, and near in-line housing starts. Risk appetite perked up some, allowing the greenback to hold its own through the close. Read more
&p[url]=/blog/xe-market-analysis/housing-permits-restrain-your-enthusiasm-part-1-2&p[summary]=Hurricane Harvey almost certainly had an effect on the August housing report, and Irma will like join it in affecting the September report as well. Here is the Census Bureau's statement, in relevant part, on the effect of the hurricanes:
They specifically note in the same statement that they made no special adjustment in the reported numbers as a result.
But, first things first.&p[images][0]=/s3/files/styles/large/s3/image_1108.jpg?itok=WuDbT06t){kind=link}
