The Greenback had a rough day and so did the rest of Wall Street as Uncle Sam’s numbers all came in the red.
- Canadian trade deficit narrowed from 3.4B CAD to 1.5B CAD vs. 2.3B CAD forecast
- U.S. trade deficit widened from $44.9B to $48.7B vs. $48.2B estimate
- New Zealand GDT auction yielded 0.4% gain in dairy prices
- U.S. ISM non-manufacturing PMI slipped from 60.1 to 57.4 vs. 59.2 consensus
- FOMC member Evans: Case for December hike “not so obvious”
Downbeat U.S. data
The latest batch of reports from the U.S. economy suggested that it ain’t all good in the ‘hood, leading many to predict that the upcoming NFP release might disappoint.
For one, the ISM non-manufacturing PMI showed a steeper than expected tumble from 60.1 to 57.4 versus the projected dip to 59.2. Components of the report revealed declines in both employment and prices, also reminding dollar traders of the weaker inflation outlook shared by Yellen and the FOMC minutes a few days back.
The U.S. trade balance also printed weaker than expected results, with the deficit widening from $44.9 billion to $48.7 billion versus the projected $46.2 billion shortfall. Underlying data showed that exports ticked lower in October while imports advanced by $3.8 billion from the previous month due to higher oil prices.
Lastly, the final services PMI reading from Markit suffered a downgrade from 54.7 to 54.5 for November instead of being upgraded to the estimated 55.4 figure. This also amounts to a dip from October’s 55.3 reading, even as prices and hiring actually ticked higher.
Wall Street in the red
The tech sector rout dragged equity indices lower for another day, also taking its toll on risk appetite as well.
- Dow 30 index is down 109.41 points to 24,180.64 (-0.45%)
- S&P 500 index is down 9.87 points to 2,629.57 (-0.37%)
- Nasdaq is down 13.15 points to 6,762.21 (-0.19%)
Gold ticked higher on risk-off flows while crude oil gave back more of its earlier gains.
- Gold is up to $1,267.50 per troy ounce (+0.21%)
- Silver is up to $16.110 per troy ounce (+0.26%)
- WTI crude oil is down to $57.36 per barrel (-0.45%)
- Brent crude oil is down to $62.58 per barrel (-0.13%)
Major Market Mover(s):
The scrilla was able to pocket some gains thanks to its safe-haven appeal and tax reform optimism, ending in the green against most of its peers, except against the yen.
USD/CHF is up from a low of .9837 to a high of .9885, EUR/USD is down from 1.1874 to the 1.1800 handle, GBP/USD enjoyed a bit of profit-taking but slumped back to 1.3405, and USD/JPY is down to a low of 112.38.
The lower-yielding yen flexed its muscles, taking advantage of risk-off flows as well.
EUR/JPY is down to the 133.00 mark, GBP/JPY continued its tumble to a low of 150.82, AUD/JPY turned from the 86.00 handle to a low of 85.64, and CAD/JPY fell back to the 88.50 minor psychological mark.
Watch Out For:
- 12:30 am GMT: Australia Q3 GDP (0.7% expected, 0.9% previous)