1 Dec: US Stocks soar on hopes of tax plan progress. US$ mixed on month-end flows. Cable still strong.

By | December 1, 2017

 

The US$ is mixed again on Friday, lower against the EU majors while firm against the Jpy and the commodity bloc currencies. The dollar was partly undermined by the story that US Secretary of State Rex Tillerson will be replaced by Mike Pompeo around the end of the year. The big story of the day though was in stocks, which again soared higher on strong indications that Donald Trump’s tax-cut plan may get enough support to pass through the Senate, with Republican Senator John McCain saying he would back the tax bill, adding it would boost the economy and provide tax relief for all Americans. WTI is a little lower, despite OPEC and non-OPEC producers, led by Russia, agreeing to extend oil output cuts until the end of 2018, while the metals have also headed lower. Note that US yields jumped higher today, breaking above 2.4% in the 10 Year Treasuries and should underpin the dollar if we see further gains.

Friday will kick off with a busy Asian session, featuring the Japan CPI (exp 0.2% – Oct), Unemployment (exp2.8%), Q3 Capital Spending (exp 3.3%) and the Nikkei Mfg PMI the Caixin China Manufacturing PMI and the RBA Commodity Index. Europe will look to the Manufacturing PMIs for guidance, as will the US, with the ISM Mfg PMI/Prices paid also to be released. Fed speakers on Friday will include Bullard, Kaplan and Harker.

CURRENCIES
EURUSD: 1.1899
Res  1.1915  1.1930  1.1960
Sup  1.1885  1.1860  1.1835
USDJPY: 112.51
Res  112.70  113.00  113.20
Sup  112.20  112.00  111.70
GBPUSD: 1.3522
Res  1.3550  1.3595  1.3655
Sup  1.3480  1.3455  1.3430
USDCHF: 0.9841
Res  0.9855  0.9870  0.9880
Sup  0.9825  0.9815  0.9800
AUDUSD: 0.7563
Res  0.7585  0.7600  0.7620
Sup  0.7550  0.7535  0.7515
NZDUSD: 0.6835
Res  0.6870  0.6905  0.6945
Sup  0.6820  0.6780  0.6750
INDICES / COMMODITIES
S&P: 2645
Res  2650  2660  2670
Sup  2640  2635  2630
DJI: 24235
Res  24340  24500  24600
Sup  24090  23950  23765
ASX SPI: 6003
Res  6035  6050  6070
Sup  5990  5975  5955
XAUUSD: 1275
Res  1280  1285  1290
Sup  1270  1265  1260
XAGUSD: 16.44
Res  16.60  16.80  17.00
Sup  16.30  16.00  15.85
WTI: 57.25
Res  57.90  58.30  59.05
Sup  56.75  56.25  55.75

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