ForexLive Americas FX news wrap: Fed holds and doesn't tip next move

Forex news for US trading on February 1, 2017

• Federal Reserve holds rates at 0.50%-0.75%, as expected


• The full FOMC statement for February 2017


• January US ISM manufacturing 56.0 vs 55.0 expected


• ADP January employment 246K vs 168K expected


• UK parliamentarians vote easily in favour of moving Article 50 legislation to next stage
  


• January final US Markit PMI 55.0 vs 55.1 expected


• Canada January Markit manufacturing PMI 53.5 vs 51.8 prior


• US Jan vehicle sales 17.61m vs 18.43m prior


• Japan GDP contracted 0.5% in December - think tank


• US National Security Advisor: We"re officially putting Iran on notice


• Bill Gross: Strong dollar is a threat to US and global growth


• White House: Treasury Secretary can address currency after confirmation


• White House issues update to say legal permanent residents no longer need waiver


• Atlanta Fed GDPNow estimate for Q1 comes in at 3.4%


• Weekly US oil inventories +6466K vs +3000K expected


• US construction spending -0.2% vs. +0.2% est.

Markets:

• WTI crude up 73-cents to $53.54


• US 10-year yields up 2.5 bps to 2.48%


• Gold down $1.60 to $1209


• S&P 500 flat at 2279


• GBP leads, NZD lags

There were some twists and turns in trading on Wednesday. The early move was US dollar strength on the back of strong ADP and ISM numbers. EUR/USD slipped to 1.0750 from 1.0780 and USD/JPY up to 113.95 from 113.35.

The dollar moves were erased later in the day on the FOMC decision. There was a bit of optimism on consumer and business sentiment but the rest of the statement was similar to what we heard previously and there were no hawkish hints.

USD/JPY fell as low as 112.64 in the aftermath but is rounding out the day near 113.20.

Cable was an interesting case. It was kicked lower on ADP but only by 25 pips and recouped the losses in an hour. It then went on to make fresh highs at 1.2680 on the Fed decision.

It was a round trip for the commodity bloc. USD/CAD rose to 1.3100 in a 50 pip move on the heels of the data but slumped back to 1.3050 on the Fed. AUD/USD was at 0.7590 then down to 0.7550, made a little double bottom, and then bounced to 0.7590 but failed to take out the earlier highs. Trade balance data is next.

ForexLive Americas FX news wrap: Fed holds and doesn"t tip next move
ForexLive Americas FX news wrap: Fed holds and doesn"t tip next move
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