Kantox currency update: The euro appreciates with the U.S. dollar losing steam
The euro advanced on Tuesday for the third consecutive day on the back of upbeat macroeconomic figures and after the Catalonian president, Puigdemont suspended temporally the declaration of independence to allow negotiations, which has eased concerns about a full-blown political crisis in Spain.
In the U.S. the dollar lost ground again, with the investors growing sceptic about Trump’s ability to pass his tax overhaul plan through the Congress, as some Republican representatives are hesitating over their support for it.
EUR/USD: returns above 1.1800. The euro appreciated sharply on Tuesday, supported by the conciliatory speech of the Catalonian president and extended its recovery from last week lows at 1.1670, to levels above 1.1800. At London market opening times, the EUR/USD is trading at 1.1820.
GBP/USD recovery extends to 1.3200. The pound appreciated on Tuesday for the second consecutive day, supported by better than expected UK industrial production figures and returned to levels above 1.3200. At London market opening times, the GBP/USD is trading at 1.3185.
USD/JPY: support at 112.00. The dollar lost ground against the yen, weighed by concerns about Trump’s Tax plan and the ongoing tensions with North Korea, to find support at 112.00 and remain trading within a 100-pips range below 113.00/20. At London market opening times, the USD/JPY is trading at 112.45.
In the Calendar Today
At 18:00 GMT all eyes will be on the be on the FOMC minutes, which will be monitored with particular interest to assess the possibilities of a December rate hike. With U.S. economy showing signs of solid growth, this event is expected to be neutral or positive for the dollar.
18:00 GMT FOMC Minutes