The US dollar is trading lower on reports that three Federal Reserve members wish to delay interest rate hikes until 2017, instead of in December 2016 as most analysts are expecting. Investors are waiting for the two latest US manufacturing output readings, September’s construction spending growth, and vehicle sales numbers set to come out later this morning. Tomorrow morning will bring ADP’s jobs report for October and mortgage application data, while the Federal Reserve meeting and interest rate decision is due in the early afternoon. Investors don’t expect the Fed to raise interest rates until December’s meeting, if at all this year.
Across the pond, the euro is rising against a weaker US dollar as Greece’s manufacturing sector output came in line with analysts’ expectations. Tomorrow morning will be heavier data-wise with a non-monetary policy ECB meeting and the latest manufacturing reports out of Spain, Italy, France, Germany, and the broader Eurozone.
Meanwhile, the pound is trading choppy after this month’s report that UK manufacturing output contracted during October, but still were on par with expectations. Investors will get another look at the UK’s retail and consumer strength with tonight’s same-store sales survey. Tomorrow morning we’ll see October’s housing price data and construction sector production results.
In the Pacific, the Australian dollar is also up after the Reserve Bank of Australia decided to keep interest rates steady last night, signaling some economic optimism. The currency is also getting a boost from last night’s positive forecasts from the manufacturing sector and strong business activity readings out of China. The Japanese yen continues to weaken as investors continue to see the US dollar as more of a “safe-haven” currency.
The Canadian dollar is climbing as oil prices recover toward $48 per barrel and as August’s GDP growth met expectations. Canada’s manufacturing production results for October are due later this morning.
EURUSD: The euro is rising against a weaker USD as Greece’s manufacturing growth came in line with expectations.
GBPUSD: The pound is falling after October’s disappointing manufacturing report.
AUDUSD: The Aussie dollar is up after China’s strong business activity readings and positive outlook from the manufacturing sector.
USDCAD: The Canadian dollar is up as oil prices recover.