USD was stronger overnight, briefly breaking above 1.29 following yesterday’s positive comments by Yellen about the US economy as well as market optimism on the outcome of the Senate vote on the Republican tax plan. The Senate began debating the bill today, with a final vote expected late today or tomorrow.
USD has since given back gains, perhaps in part due to large option expiries at 1.28 and 1.2850 weighing on the greenback.
The US Department of Commerce published October personal income and spending data as well as the Fed’s much talked about Personal Consumption Expenditures (PCE) Index, which represents inflation. Inflation came in as expected, with personal income and personal spending coming in slightly above forecasts.
Crude oil prices reversed the recent downward trend this morning with expectations of a positive outcome of the OPEC meeting in Vienna, which started today. Before the meeting got underway, the Saudi Energy Minister stated that he was in favour of the production pact being extended to the end of 2018. WTI crude is up 0.73% to $57.72 with Brent crude up 1.40% to $64.00 at the time of writing.