Daily FX Wrap – Dollar rules the roost

DXY

Firmly above the 93.00 handle throughout the session, initially on reports that US President Trump was impressed with Fed chair candidate Taylor after interviewing the Stanford academic, who subsequently leapfrogged other runners for the top job to 2nd favourite, according to some financial bookmakers. Stronger than expected import/export price data kept the bullish momentum going (alongside higher US Treasury yields), and the greenback retained a bid through in line IP/Manufacturing output (which would have been better but for the hurricanes) to an above forecast NAHB print.

GBP

The Pound suffered most against the resurgent Dollar despite UK CPI hitting a 3% multi-year high, as new BoE/MPC members revealed more dovish tendencies than the mainstream backing a rate hike in coming months, and Governor Carney did little to reinforce market expectations for tightening in November. Cable subsequently retreated from near 1.3200 highs towards 1.3150, with sell-stops reportedly triggered through 1.3195-90 and then 1.3175.

EUR  

Eur/Usd backed off from 1.1800 again, and the pair is testing the 1.1739/18 support area ahead of Thursday’s next ‘D day’ for Catelonia.

JPY

Above 112.00 against the Usd, but keeping an eye on a hefty option expiry at that level and respecting 21 and 10 DMAs.

17 Oct 2017 - 15:37- Fixed IncomeBank Speaker- Source: RANsquawk

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