17 Nov: Stocks up, US$ underpinned after House of Reps passes US tax bill. Draghi/Weidmann in focus, Friday.

By | November 17, 2017

 

The US$ is generally a little firmer on Friday, while stocks have rebounded strongly from their recent lows after the US House of Representatives passed the tax reform bill, with the Senate likely to have their vote after the Thanksgiving weekend. The dollar’s move though does not seem to have any real conviction, in what has been a very quiet session by recent standards, with most pairs pretty much unchanged from yesterday. The main mover today has been Sterling, which is a little higher after a better than expected UK Retail Sales figure (-0.3% vs expected -0.6%). in other data, the US initial jobless claims rose to 249k last week, exceeding expectation of 234k. while the continuing claims dropped -44k to 1.86m, hitting the lowest level since December 1973. The Philly Fed manufacturing index dropped to 18.9, below expectation of 24.1 while the import price index rose 0.2% mm in October and Industrial production rose 0.9% in October. Capacity utilization rose to 77.0%. The metals and oil have both had tight, rangebound sessions.

For the most part Friday should be fairly quiet with not too much data although there will be a couple of points of focus. The NZ PPI and Australian New Motor Vehicle Sales should hardly create a ripple but later in the day, ECB Governor, Mario Draghi will be speaking as will the Buba president Weidmann. Also from the EU we get the September Current Account and Construction output data. From the US comes the Housing Starts and the Building Permits as well as the Kansas Fed Mfg Activity. That is about it though, so have a good weekend.

CURRENCIES
EURUSD: 1.1765
Res  1.1785  1.1800  1.1835
Sup  1.1755  1.1740  1.1725
USDJPY: 113.00
Res  113.10  113.30  113.50
Sup  112.70  112.45  112.25
GBPUSD: 1.3184
Res  1.3205  1.3215  1.3230
Sup  1.3160  1.3130  1.3100
USDCHF: 0.9941
Res  0.9950  0.9970  0.9985
Sup  0.9925  0.9905  0.9880
AUDUSD: 0.7590
Res  0.7600  0.7620  0.7650
Sup  0.7570  0.7550  0.7520
NZDUSD: 0.6850
Res  0.6870  0.6920  0.6895
Sup  0.6835  0.6815  0.6800
INDICES / COMMODITIES
S&P: 2586
Res  2590  2595  2600
Sup  2580  2575  2570
DJI: 23436
Res  23465  23540  23555
Sup  23405  23375  23340
ASX SPI: 5989
Res  6000  6020  6045
Sup  5975  5950  5925
XAUUSD: 1279
Res  1285  1290  1295
Sup  1275  1270  1265
XAGUSD: 17.08
Res  17.10  17.20  17.30
Sup  16.95  16.80  16.65
WTI: 55.11
Res  55.60  56.30  57.15
Sup  54.75  54.35  53.85