Forex news for New York trading on May 3, 2017
Markets:
– Gold down $15 to $1240
– WTI crude up 14-cents to $47.78
– US 10-year yields up 4 bps to 2.32%
The dollar got good news and more good news on Wednesday. The ADP numbers were in line with estimates so that was a push. The first boost came from a very strong ISM non-manufacturing report that included the best new orders in years. The market was hesitant to buy dollars ahead of the FOMC so the reaction was minor at the time. The Fed decision didn’t give any overt hints but it brushed off soft Q1 growth so that was seen as clearing the way to a June hike. At a 93% probability, it looks overdone to me but I won’t challenge the wisdom of the market.
