Forex today was taken by surprise on a sudden USD selling wave seen in Asia, as the US futures tumbled on reports of the proposal of a temporary cut in the corporate tax rates from 35% to 20% that would phase out after a decade. Most majors benefited the most from the USD sell-off, but the Kiwi emerged the biggest gainer. The Asian equity markets suffered losses initially but managed to regain ground, while oil prices traded modestly flat. Gold witnessed a short-lived rally above $ 1280 mark.
Main topics in Asia
Australia's trade surplus improves in September, building approvals rise
Australia's trade balance for September came in at AUD 1,745 million vs AUD 1200 million exp.
North Korea is developing an advanced intercontinental missile - CNN
CNN is reporting this Thursday morning that North Korea is already working on an advanced version of its existing K-20 intercontinental ballistic missile that could potentially reach the US.
Dollar Index drops, yield curve flattening gathers pace
Dollar Index (DXY) is losing altitude in Asian trade, tracking the flattening of the treasury yield curve and moderate risk aversion in the equity markets.
US futures drop on temporary corporate tax cuts news
The US equity futures witnessed fresh selling in the Asian trades, fuelled by risk-off sentiment, as markets assessed the overnight comments from the US house tax committee Chairman Brady…
Saudi EnergyMin: Saudis see OPEC renewing resolve to normalize oil stockpile
Reuters reports the latest comments from the Saudi Arabian Energy Minister Al-Falih, with the key headlines found below.
Key Focus ahead
Today’s economic calendar remains eventful, with full markets returning and poised for the final manufacturing PMI reports due out from the Euro area economies. The UK traders eagerly await the construction PMI data, after yesterday’s positive surprise delivered by the manufacturing sector activity report.
However, the main risk event for today remains the BOE interest rate decision and Quarterly Inflation Report (QIR) release, which will set the tone for the GBP markets in the coming months. A rate hike is already priced-in by the market participants, and hence, all eyes remain on the forward guidance for fresh trading impetus.
From the US docket, we have the weekly jobless claims and a slew of speeches by the FOMC members, including the Fed Chair nominee Powell and Dudley. The focus also remains on the Trump’s announcement of the next Fed Chair as well as on the tax reform bill, which will be unveiled later in the American morning.
GBP/USD: Sell the pullbacks ahead of BOE?
The GBP/USD pair extended its rebound from below the mid-point of 1.32 handle and went on to test the 1.33 handle in Asia, although further upside appears to lack follow-through, as investors remain wary ahead of the key risk events for today – the BOE rate decision.
Will EUR/USD cut through H&S neckline hurdle?
The EUR/USD pair was well bid in Asia on the back of broad based USD selling, but still failed to cut through the head and shoulders neckline hurdle of 1.1671.
GBP to rally on BOE as short-term rates reprice – Barclays
Barclay’s analysts offer their thoughts on the BOE monetary policy outcome and its impact on the pound, noting that markets is already focused on the next move.
Trump to announce Fed Chair nominee at 1900 GMT Thursday – White House
Livesquawk reports the latest statement released by the White House, citing that the US President Trump is expected to announce the next Fed Chair at 1500 ET (1900 GMT) later on Thursday.
House of Republicans to unveil tax reform bill at 1515 GMT
The latest headlines crossing the wires from the US, via Reuters, cite that the House of Republicans is expected to unveil the tax reform bill at 11:15 am local time (1515 GMT).
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
![EUR/USD stays in positive territory above 1.0850 after US data](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/money-euro-and-dollar-banknotes-17371247_XtraSmall.jpg)
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
![GBP/USD stabilizes above 1.2850 as risk mood improves](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/strong-pound-weak-dollar-17536259_XtraSmall.jpg)
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
![Gold rebounds above $2,380 as US yields stretch lower](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/gold-gm187363896-28836378_XtraSmall.jpg)
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
![Avalanche price sets for a rally following retest of key support level](https://editorial.fxstreet.com/images/Avalanche/Avalanche_XtraSmall.jpg)
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
![The election, Trump's Dollar policy, and the future of the Yen](https://editorial.fxstreet.com/images/Macroeconomics/Events/US%20Elections/Donald_Trump_closeup_XtraSmall.jpg)
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.