US Market Wrap: Nouveau Fed hawk Dudley dines on doves
- Nothing of note
- Housing Starts -July (Actual 1.21 million vs. forecast 1.80 million, m/m)
- Building Permits -Jul (Actual 1.15 million vs. forecast 1.16 million)
- CPI -July (0.0% vs. forecast 0.0%)
- CPI ex- food and energy (Actual 0.1% vs. forecast 0.2%)
- Industrial Production-Jul (Actual 0.7% vs. forecast 0.3%)
- Capacity Utilization-July (Actual 75.9% vs. forecast 75.6%)
- API Crude Stocks Change (Actual -1.0 m/b vs. previous week 2.09 m/b)
A barrage of US economic data releases and a comments from New York Federal Reserve President William Dudley sent the US dollar on a wild ride.
Just as traders were trying to decipher the CPI, Housing Starts and Building Permits data, comments from Dudley scrolled across screens.
Yesterday, fellow board member, San Francisco Fed President John Williams, implied lower rates for longer when he talked of raising the Inflation target. That is “forward guidance”, in Janet Yellen’s Fed-speak.
By the time New Yorkers headed for the exit’s Aussie, Kiwi and Yen were the losers for the session and those losses were small.
API weekly crude stocks change showed a decline of 1 million barrels but a 2.2 million barrel rise in gasoline inventories pushed WTI down to $46.07/b before bouncing to $46.37/b in after-hours trading.
Michael O'Neill is an FX consultant at IFXA Ltd. Follow Mike or post your comment below to