Market wrap: US dollar index is up 0.5% - Westpac
|Analysts at Westpac offered a market wrap.
Key Quotes:
"Global market sentiment: US equities made fresh record highs again, and the US dollar preserved yesterday’s gains. US bond yields fell, despite strong economic data.
Interest rates: US 10yr yields initially extended yesterday’s rise to 2.37% but reversed during the London morning to 2.32% and then consolidated. ISM manufacturing and construction data may have helped halt the yield slide. Fed fund futures yields continued to price the chance of a December rate hike at 77%.
Currencies: The US dollar index is up 0.5% on the day, but most of those gains came before the London/NY session where it consolidated. EUR preserved yesterday’s slide to 1.1730, unrest in Catalonia possibly contributing. USD/JPY reversed yesterday’s gains, falling from 113.06 to 112.53. AUD rebounded from 0.7796 (a six-week low) to 0.7840. NZD rebounded from 0.7168 to 0.7218. AUD/NZD ranged sideways between 1.0855 and 1.0880.
Economic Wrap
US construction spending rose 0.5% (vs 0.4% expected), with strength in both new private construction and home improvements (despite Hurricane Harvey). Public construction was weaker than expected though. ISM manufacturing rose from 58.8 to 60.8 (vs 58.1 expected), with some of the rise attributable to hurricane-related rebuilding. That activity should extend into year-end.
FOMC hawk Kaplan thought rate hikes may not be as much as people thought, and was undecided about December. Dove Kashkari thought the Fed should wait until after PCE inflation has reached 2% before hiking further."
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.