Dollar Higher In Quiet Trading

The dollar crept higher in yesterdays trade as the currencies continued to trade in relatively quiet ranges. House Speaker Ryan helped the dollar appreciation with positive comments on the tax reform plans but we had less positive comments from the Fed’s Evans and Rosengren who came across as much more cautious.

Elsewhere in the market, the Euro came under pressure with weaker than expected PPI data out of Germany and the general feel that most political good news is now priced in on the continent. BOE Governor Carney scuppered hawks hopes that the MPC could be considering a rate hike anytime soon and this helped the Cable to drop through recent support levels and we also heard from the SNB’s Jordan who once again mentioned intervention which helped the Swiss franc appreciate but not by any great degree.

Looking ahead to today’s trading and once again general dollar sentiment should dominate any fresh moves in the market. It’s once again very quiet on the fundamental data front and the main risk events will come in the London session with the PSNR due at 6.30 pm and the MPC’s Haldane speaking a few hours later. The it’s a long wait to early tomorrow morning when we have the RBNZ’s Official Cash Rate announcement. Expectations are for no change but as usual traders will be looking for anything in the statement to kick start a fresh move in the flightless bird.

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