FX Morning Colour: Greenback bid, as NAFTA nations benefit
The dollar index caught a marginal bid overnight, trading back above 93.50. This comes off the back of yesterday’s reports that the US President could be swaying towards, noticeable hawk, John Taylor as Janet Yellen’s successor, with the announcement expected before Trump’s department for Asia on November 3rd.
CAD & MXN
NAFTA reports were a theme of yesterday’s US session, as early source reports indicated that Canada and Mexico were said to reject US NAFTA proposals. However, as the story developed, later comments took focus, stating that ministers had agreed to extend negotiations into 2018.
Following the initial reports, USD/CAD hit 1.2590, however, over the following hours, the move was reversed, as the pair broke through 1.25, hitting lows through 1.2490. USD/MXN saw similar price action, after firstly moving to highs of 19.1500, the pair came back to trade at lows of 18.7300.
Sterling trades subdued, following the bearish BoE commentary seen yesterday. Much anticipation will now be on the 9.30 (BST) UK jobs report to see if any reprieve can be seen in the pound. GBP/USD has consolidated through 1.32, with EUR/GBP running into a slowdown at 0.8930, now behaving as the weekly high.
18 Oct 2017 - 07:55- ForexBank Speaker- Source: RANsquawk
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