By Mexgroup.com
The Dollar Was Little Changed Below the Recent 11-Week High. The U.S. Dollar Index was down 0.18% after U.S. economic data did little to change views on the timing or pace for monetary tightening and investors awaited fresh triggers for trading. There was a change in sentiment for the greenback during the Asian session as investors saw bets strengthen on Jerome Powell to become the next Fed Chair in February, a well renown dovish board member of the central bank. Yellen is still in the running and did not comment on monetary policy today in St. Louis. Investors focus their attention to upcoming unemployment claims and trade balance figures this evening out of the United States.
The Kiwi Remains Largely Flat Against the Greenback. The New Zealand Dollar opened this morning at 0.7160 after having some positive movements during the American session, reaching a high of 0.7204. The Kiwi initially lost ground against its counterpart when US non-manufacturing PMI numbers outperformed. This was then counter-balanced by increased speculation on Trumps next choice for Federal Chair with the significance being that the resulting decision will influence monetary policy going forward.
Australian Dollar Hits Weekly High. The Australian dollar edged upward on Wednesday pushing back through 0.7830 and testing intraday highs at 0.7875. With little domestic data on hand to drive direction the AUD found support in wider USD weakness as investors reacted to a proposed short list of candidates to replace Janet Yellen as Fed and FOMC Chair.
Canadian Dollar Awaits for Trade Balance Release. The USD/CAD lost 0.192 percent on Wednesday. The currency is trading at 1.2482 with the loonie regaining some ground after the USD got a temporary boost from purchasing managers in the service sector. In a day with few economic data releases the Canadian trade balance will impact the USD/CAD but could end up being eclipsed by FOMC member comments.
Gold Pares Gains as Dollar Comes Off Data Low. Gold was little changed at $1,275.39 an ounce as the US dollar came off its lows on strong data from the US service sector index. Having touched its lowest since mid-August on Tuesday, spot gold was up 0.2 per cent at $US1,274.41 per ounce on Thursday. Earlier on Wednesday, it reached a high of $US1,282 per ounce.
Free Reports:
Oil Prices Fall for Third Session to Lowest Settlement in Over Two Weeks. Oil prices eased on Wednesday for a third-straight session, settling at their lowest level in more than two weeks. U.S. government report released Wednesday showed a much bigger-than-expected weekly drop in crude supplies along with a rise in gasoline stockpiles. WTI crude dropped 0.9% to $49.98 a barrel, Brent crude futures were down 0.4 percent, at $55.78 a barrel.
Watch Out Today for:
11:30 am GMT: EUR ECB Monetary Policy Meeting Accounts
By MEX Group Team
The post Uncertainty About the Next Fed Chair Keeps US Dollar Lower; Oil Slid Below $50 05-10-2017 appeared first on mexgroupblog.