Posted on: 19 November 2015, by: Pepperstone Support, category: Market Review
USD was bid throughout NY trading although follow through seemed rather mixed. Commodities weighed on linked ccy pairs as oil and copper continued to trade very heavily. USDJPY traded higher on the minutes although only by about 30 pips up to 123.80 before trading back to pre minute levels.
US housing starts fell more than consensus estimates, however effects were softened by strong building permits data.
FOMC October minutes released today, “Most participants anticipated that, based on their assessment of the current economic situation and their outlook for economic activity, the labor market, and inflation, these conditions could well be met by the time of the next meeting.”
Number of the Fed members spoke ahead of the minutes with hawkish rhetoric, most notably Dudley saying he does not expect a “huge surprise” from the markets reaction when the Fed hikes.
USDCAD made a move to test 1.3355 but failed to close above, tracking the lower move in oil. WTI dipped below 40 for the first time since August 27. DoE inventory data was relatively mixed and didn’t seem to drive any major price action.
Looking ahead, Thursday holds the BoJ decision and ECB minutes. Markets are expecting that no additional easing will be announced at the BoJ meeting.