Forex news for New York trade on October 25, 2021:
- S&P 500 closes at another record as tech and Tesla post a monster day
- Dallas Fed October manufacturing index +14.6 vs +4.6 prior
- Mastercard says any bank or merchant on its network can soon offer crypto services
- Tenreyro: There's little the BOE can do to affect some short-term inflation drivers
- Chicago Fed Sept national activity index -0.13 vs +0.05 prior
- Biden to lift travel restrictions on November 8
- Schumer: There are 3-4 issues left to solve on economic bill
- Manchin sees framework for deal this week, says his top line is still $1.5T
Markets:
- S&P 500 up 22 points to record 4566
- US 10-year yields flat at 1.635%
- WTI crude oil down 33-cents to $83.44
- Gold up $14 to $1806
- AUD leads, CHF lags
The meaningful moves in FX today came early in Europe as the euro sagged and the US dollar made some headway. Some of that might be positioning ahead of the ECB meeting, with commentary stressing a dovish stance. That contrasts with other regions, where are hikes are slowing being built in.
The commodity bloc was choppy with the loonie struggling against its cousins despite strong energy prices, at least early on as oil hit new cycle highs. Natural gas carried the water later but it didn't matter with CAD hitting a five-day low.
Cable and USD/JPY chopped straight sideways with not much to report.
Tech was a tailwind for the US dollar, in particularly TSLA which is a mega-cap trading in like a meme stock. It added around $100 billion on the day with Elon getting one fifth of that to himself. Not a bad day for the world's richest man. How was your P&L today?
