USD Falls Due to Mixed Fed Commentary; Oil Prices Move Lower on Inventory Surprise
Published October 12, 2017
The US dollar remains weak this morning after yesterday’s release of the Federal Reserve meeting minutes from the central bank’s September meeting. Several Fed officials believe that further rate hikes are largely dependent on upcoming economic data.
Most Federal Reserve members opined that another US rate hike “was likely to be warranted” in 2017. Despite this, the US dollar remains weak as investors now to turn jobs data, producer price inflation and consumer price inflation for further confirmation of US growth.
Today’s data release on US Unemployment Claims showed jobless claims decreased by 8,000 last week. Producer prices in the US also increased as expected.
European Central Bank President Mario Draghi is set to speak in a panel discussion at the Peterson Institute of International Economics in Washington DC today at 9:30 AM EST; investors will look for clues on the Draghi’s plans regarding economic stimulus for the euro zone.
Euro weakness remains subdued as the political turmoil in Spain continues to ease; Spanish Prime Minister Mariano Rajoy released a statement yesterday offering the Catalan government eight days to abandon its attempts for independence.
US President Donald Trump said that he would be open to independent trade deals with Canada and Mexico if NAFTA talks fail. Canadian Prime Minister Justin Trudeau remained optimistic on NAFTA when asked for comment on the current round of renegotiations.
Oil prices moved lower this morning after data from the American Petroleum Institute showed that US crude inventories unexpectedly rose; the US Energy Information Administration will release its iteration of the data today at 10:30 AM EST.