Daily Update - 23rd November 2017
The greenback dropped across the board after release of dovish Fed minutes. Earlier on Wednesday morning, dollar was on the back foot as Fed Chair Yellen's speech sounded uncertain about the pace of U.S. inflation. Pound rebounded after falling briefly on UK Finance Minister Hammond's budget speech. ECB Non-monetary policy meeting did not provide any excitement to the investors however, the Euro got a bonus bounce from reports that the EU and UK will come to terms with the Brexit divorce bill. Although market watchers were disappointed by the lack of new fiscal stimulus and the government's plans for more borrowing with the release of UK Autumn Forecast Statement the investors ignored and moved their focus to already sliding down dollar. From the FED meeting minutes, policymakers generally agreed the economy was poised for strong growth. Several Fed officials also saw improved chances that the U.S. Congress would pass significant tax cuts that would boost business investment. However some policymakers said they still needed to see more data before deciding the timing of a rate hike, many of the officials said the jobless rate appeared to be too low for inflation to remain at its current weak level. These comments avoided any positive movement for Dollar. On the data front, total durable goods orders, which include transportation items, decreased by 1.2% last month, the Commerce Department said, compared to economists' expectations for a gain of 0.3%. That came after September’s strong surge of 2.2%, which was upwardly revised from an initial 2.0% advance. Financial markets in Japan and USA will be closed for Thanks Giving holiday. The euro zone is to release data on manufacturing and service sector activity. The UK is to produce revised data on third quarter economic growth. The ECB is to publish the minutes of its latest policy setting meeting in the evening.Yesterday’s Focus
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