EURUSD currency pair paid a short visit to the 1.1850 area yesterday but edged lower again following the decent US CPI release. The Data Reveals USD Lost Glory.
16 November, HotForex – In the US, industrial production data for October is due for release. We believe that the current development in industrial production broadly reflects the strength of the economy and hence estimate industrial production increased 0.25% in October.
In the currency market, the USD bounced back against the euro and the short move above 118 was reversed as the market is being confirmed in the rate hike from the Federal Reserve. It has stayed below 118 in Asian trading this morning.
Data Reveals USD Lost Glory
Data Reveals USD Lost Glory – The dollar perked up a bit following the industrial production beat, leaving EURUSD down 10 points or so to1.1771, and USDJPY over 113.05 from 113.00. Equity futures continue to indicate a higher Wall Street open. Markets are now focused on the U.S. House vote on tax reform, which is expected at some point today.
The next focus for the greenback is the voting on the US tax bill, The House will commence after meeting with Trump midday. News that two Republican senators (Ron Johnson and Susan Collins) have publicly criticized the bill suggests dollar bulls may be wise to tread carefully, lest this portends the vote in the upper chamber failing (the GOP has only a 52-48 majority in the Senate), which in the event would likely spark dollar selling.
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