Forex news for US trading on October 2, 2017:
- Sept ISM manufacturing index 60.8 vs 58.1 expected
- Markit September final US manufacturing PMI 53.1 vs 53.0 expected
- Fed's Kaplan: I use M&A activity to judge strength of cyclical inflation
- Kaplan says hurricanes to create weakness in Q3 growth
- Atlanta Fed GDPNow Q3 estimate jumps to 2.7%
- ECB's Praet: Sees eurozone output gap closing in 2018
- US officials say no indication Las Vegas shooter affiliated with any international groups
- Fed's Kashkari: No reason to hike until inflation back to target
- US construction spending for August 0.5% vs 0.4% estimate
- ECB's Praet: Keeping balance sheet constant leads to some tightening
- Canada Sept Markit manufacturing PMI 55.0 vs 54.6 prior
- ECB's Praet: Still see insufficient progress towards inflation
- Hammond says UK economic future will remain closely linked to EU
- Catalonia's Puigdemont says he will start legal action regarding referendum violence
Markets:
- Gold down $8 to $1272
- US 10-year yields down 0.5 bps to 2.34%
- S&P 500 up 10 points to record 2529
- WTI crude down $1.13 to $50.54
- USD leads, GBP lags
It was a miserable day in the real world as it began with a horrific mass shooting in Las Vegas that left 56 dead and ended with news that Tom Petty is dead.
In any case, the financial economy marched on with stocks hitting a record high on hopes for a tax break. The US dollar was along for the ride as it climbed on all fronts.
A small wobble hit early in New York trading on new-month flows but it was soon-after washed out.
Volatility was low in North America as USD/JPY bounced around in the 112.50-112.75 range, finishing at the top end. It quick wave of buying came on the manufacturing data, especially the prices paid component.
EUR/USD was similar as it climbed to 1.1750 a few times but was beaten back down. Bids at 1.1730 continue to hold but the assault is unrelenting and that will be a level to watch in the hours ahead.
Cable was the big story earlier on soft manufacturing data. It turned into the worst day for the pound since June as it fell 122 pips to 1.3275; just off the session low of 1.3257.
The commodity currencies were mixed. USD/CAD finished 40 pips higher on the drop in oil prices but AUD/USD bounced after falling as low as 0.7796. Last at 0.7826.
