Jolts jobs opening returned the dollar to a rally as it beat analyst expectations staying at 6.09m. This aided the USD's return upwards gaining 0.28% against the Canadian dollar rising to 1.2807. Fitch raised US debt to GDP ratio on the back of the effect current tax reforms would have on federal deficit. The house remains divided on the tax reforms as Democrats and some Republicans are uncomfortable with the effect the tax cut would have on debt. News filtering in during the Asian session notes that US Senate Republicans may delay the corporate tax cuts by 1 year. But details could change ahead of Thursday's formal release of the bill by the Senate Finance Committee. Crude inventories are expected in today analyst have forecasted -2.5m as against the prior week's -2.4m.
The RBNZ will later today announce its stance on interest rate as it concludes its 2 day monetary policy meeting. Expectations are that the official cash rate will be left unchanged at 1.75%. The Labour party's intention of including full employment to the RBNZ's responsibility may come to fruition as reports indicates the party is reviewing the dual function of the Central Bank. This could also include the addition of external members to the monetary policy committee which presently consist of the RBNZ chair and his deputy. Trading during the Asian session brought back NZD/USD to 0.6917 after it slid to 0.6890 in the course of trading yesterday. A dovish rate statement may push the currency pair further down south.
The Euro took a plunge in the course of trading on Tuesday as it fell to a low of 1.1557 against the dollar. Investors ignored a higher than forecasted retail sales data as German Industrial Production, French Balance Budget and Retail PMI were not as impressive. Retail sales rose to 0.7% from -0.1% the prior period and above analyst forecast of 0.6%. 3 of ECB policymakers according to sources familiar with the ECB, wanted a tighten of the central bank's quantitative easing program even if inflation remains soft. Note that, the ECB announced on October 26 to continue buying bonds until price pressures increase. The ECB chief, Mario Draghi, did not comment on monetary policy at the second ECB Forum on Banking Supervision on Tuesday, while the ECB board member Sabine Lautenschlaeger said she "would have liked a clear exit" from the asset purchase program. Besides the French trade balance, the Euro-area would have a quite day in terms of economic data.
The British Pounds returned northward on the back of Halifax HPI being much in line with analyst expectations. The index rose to 0.3% down from the prior period's 0.8% but above a 0.2% forecast. GBP/USD rose to 1.3176 but retreated during the New York session on the back of brexit pressures as investors wait for negotiation to enter the next stage. It rose back to 1.3168. News on Brexit and economic data from other major currencies will dictate the tune of the pound for the day as there is no economic data expected from the UK today. GBP/JPY traded flat during the Asian session.
The RBA's retention of cash rate at 1.5% led the Aussie down a bearish path to 0.7630 against the dollar. Inflation being below the Central Bank's band of 2-3% and rising household debt continues to hold down interest rate. China's trade balance if positive could return AUD/USD upwards.
On the commodities side, gold erased Monday's gains falling to 1, 272 as the dollar rebounded. Oil prices remained above $60 on the back of the mid east tumult. OPEC in its 2017 world oil outlook forecasted a rise in shale production and demand growth for the next 2 years
The RBNZ will later today announce its stance on interest rate as it concludes its 2 day monetary policy meeting. Expectations are that the official cash rate will be left unchanged at 1.75%. The Labour party's intention of including full employment to the RBNZ's responsibility may come to fruition as reports indicates the party is reviewing the dual function of the Central Bank. This could also include the addition of external members to the monetary policy committee which presently consist of the RBNZ chair and his deputy. Trading during the Asian session brought back NZD/USD to 0.6917 after it slid to 0.6890 in the course of trading yesterday. A dovish rate statement may push the currency pair further down south.
The Euro took a plunge in the course of trading on Tuesday as it fell to a low of 1.1557 against the dollar. Investors ignored a higher than forecasted retail sales data as German Industrial Production, French Balance Budget and Retail PMI were not as impressive. Retail sales rose to 0.7% from -0.1% the prior period and above analyst forecast of 0.6%. 3 of ECB policymakers according to sources familiar with the ECB, wanted a tighten of the central bank's quantitative easing program even if inflation remains soft. Note that, the ECB announced on October 26 to continue buying bonds until price pressures increase. The ECB chief, Mario Draghi, did not comment on monetary policy at the second ECB Forum on Banking Supervision on Tuesday, while the ECB board member Sabine Lautenschlaeger said she "would have liked a clear exit" from the asset purchase program. Besides the French trade balance, the Euro-area would have a quite day in terms of economic data.
The British Pounds returned northward on the back of Halifax HPI being much in line with analyst expectations. The index rose to 0.3% down from the prior period's 0.8% but above a 0.2% forecast. GBP/USD rose to 1.3176 but retreated during the New York session on the back of brexit pressures as investors wait for negotiation to enter the next stage. It rose back to 1.3168. News on Brexit and economic data from other major currencies will dictate the tune of the pound for the day as there is no economic data expected from the UK today. GBP/JPY traded flat during the Asian session.
The RBA's retention of cash rate at 1.5% led the Aussie down a bearish path to 0.7630 against the dollar. Inflation being below the Central Bank's band of 2-3% and rising household debt continues to hold down interest rate. China's trade balance if positive could return AUD/USD upwards.
On the commodities side, gold erased Monday's gains falling to 1, 272 as the dollar rebounded. Oil prices remained above $60 on the back of the mid east tumult. OPEC in its 2017 world oil outlook forecasted a rise in shale production and demand growth for the next 2 years
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