Forex news for North American trading on November 2, 2021:
- Biden says he will be making Fed nominations 'fairly quickly'
- RBA's Lowe: Inflation at the end of 2023 at 2.5% "does not justify higher interest rates"
- New Zealand GDT price index +4.3% vs +2.2% prior
- Manchin says he's working to refine Biden plan not kill it
- November IBD/TIPP US economic optimism 43.9 vs 46.8 prior
- Pelosi says House could vote as soon as Thurs on reconciliation package
- Canada Sept building permits +4.3% vs +3.1% expected
Markets:
- Gold down $6 to $1787
- WTI crude oil down 53-cents to $83.52
- S&P 500 up 17 points to 4630
- US 10-year yields down 2.6 bps to 1.547%
- JPY leads, AUD lags
The lead up to an FOMC decision usually and infensures a quiet day and that's what we got with USD/JPY pitching a shutout but that wasn't the case everywhere. The RBA didn't pivot as hard as some thought and AUD fell hards, taking NZD wit hit. I'd argue that's Part 1 of a slow climbdown but the market has its own ideas.
The US dollar was generally bid in New York trade and was particularly strong into the London fix, where the were was a crescendo of buying.
The bond market took back some of the recent rise in yields, perhaps on position squaring on the Fed, perhaps on pushing the rate hike and inflation narrative too far, too fast.
