ForexLive Americas FX news wrap: Corporate tax cut could be phased in
Forex news for US trading on October 30, 2017
- US corporate tax rate cut to 20% may not come until 2022
- White House: We want to pass tax bill by Thanksgiving
- Trump expected to name Powell as Fed chief - report
- Manafort and Gates indicted on 12 counts including conspiracy against the United States
- Manafort and Gates plead not-guilty
- Papadopolous pleads guilty, to cooperate with FBI
- Dallas Fed manufacturing index 27.6 vs 21.3 prior
- Dallas Fed trimmed mean PCE 1.8% vs 1.6% prior
- Germany Oct CPI flash mm 0.0% vs 0.1% exp
- Sept US PCE core +1.3% vs +1.3% expected
- Spanish 2017 GDP to grow 3.1% says De Guindos
- Spain's state prosecutor calls for charges to brought against Catalan leaders
- EU says date for next round of Brexit talks still under discussion
- Gold up $3 to $1277
- S&P 500 down 7 points to 2573
- US 10-year yields down 4 bps to 2.37%
- WTI crude up 26-cents to $54.16
- GBP leads, CAD lags
A few things combined to weigh on the US dollar early in the week. It started with some risk aversion on the Manafort and Russia-collusion news but while that's likely to be the front-page news tomorrow, it ranked third in what was driving the market.
The first true wave of US dollar selling came after a report that the corporate tax cut to 20% could be phased in over four years rather than delivered right away. Naturally, that wasn't great news for stocks.
Later, a report said Powell is likely to be Trump's choice when it's revealed Thursday. That set off more USD selling in what was the second day of retracements or the dollar.
USD/JPY fell below last week's lows all the way to 113.03 from 113.60 when US traders arrived. EUR/USD is finishing the day with a flourish in a 50 pip rally to 1.1658 after a dip as low as 1.1605. Bids at the figure held on a couple of occasions.
The biggest mover was cable as the market finally feels like it's safe to focus on the BOE decision rather than Brexit drama. The bid was steady and helped the pair to 1.3210 late from 1.3180 at the start of New York trade.
The rally in oil prices didn't do much to help the Canadian dollar as the market continues to price-out a December hike. Still, the pair was choppy in a rise to 1.2860 that was followed by a late fade to 1.2820.
It's going to be a fun week, see you tomorrow.