Tax Reform Doubts Weigh on Dollar. The U.S. dollar wobbled against its peers on Wednesday and edged further away from a 10-week high scaled recently amid speculation that the U.S. tax overhaul plan introduced by President Donald Trump would stall, with a buoyant euro adding further pressure on the greenback. Fed uncertainty also continues to weigh on the currency. Despite last week’s U.S. dollar rally on the back of some stellar ISM economic data, there was far from a consensus buy-in on the move as Fed Chair uncertainties continued to dominate traders psyche. After all, it took little more than a baseless North Korea headline to send the dollar reeling. While the market continues to look to Fridays CPI for some guidance, there’s increasing chatter that the street will ignore the print being more concerned with the next Fed Chair.
Euro Hovered Near 10-Day Peak after Catalonia’s Leader Speech. The Euro popped 30 pips on Catalan President Puigdemont parliament speech where he called for deferred independence, a friendly way of extending talks with the Spanish government and hopefully agree how to prevent a future separation. Spanish banks stocked up on European Central Bank money at a weekly auction on Tuesday, fearing jitters on the funding market if Catalonia breaks away from Spain.
Gold Gains on Weaker Dollar. Gold rose for a fourth day on Wednesday, after hitting a near two-week high in the previous session, supported by weakness in the U.S. dollar. Spot gold jumped to $1,294 an ounce, the highest level since Sept. 27.
Oil Up on Signs of Tighter Market. Oil prices edged up on Wednesday, extending 2 percent gains recorded the previous day, on signs that markets are gradually tightening after years of oversupply, although the outlook for 2018 remained less certain. U.S. WTI crude futures were trading at $51.07 per barrel, up 0.3 percent from their last settlement, Brent crude futures were at $56.71, up 0.2 percent from their last close. Traders said they would look to the U.S. fuel inventory data on Wednesday and Thursday for indicators on price direction.
Watch Out Today for:
14:00 pm GMT: USD FOMC Minutes
By MEX Group Team
The post Euro Higher on Easing Political Uncertainty, US Dollar Dips on Tax Reform Doubts 11-10-2017 appeared first on mexgroupblog.