On Wednesday, the Greenback fell to more than one week low vs. a basket of major currencies negatively affected by uncertainty over President Donald Trump’s tax plan, while the single currency rose to a two-week high as worries over Catalonia eased. The U.S. dollar traded under pressure as Trump’s war of words with Republican Senator Bob Corker increased fears that his push for a tax-code overhaul could be harmed.
On the economic calendar for Wednesday, traders are awaiting the release of minutes of the September Federal Reserve policy meeting later in the session.
The euro rose to a two-week high against a broadly weaker dollar as political tensions over Catalonia receded slightly. The single currency’s rally supported after Catalan leader Carles Puigdemont yesterday proclaimed the region's independence from Spain, avoiding an immediate crisis. The common currency climbed to as high as $1.1819 in early trade on Wednesday.
The U.S. dollar fell as much as 0.20% vs. the JPY as a number of geopolitical concerns continued to dominate market sentiment in the absence of any major U.S. economic data and as traders are focusing on FOMC Meeting Minutes. USDJPY settled at ¥112.22.
Gold prices edged lower ahead of minutes from the Fed due later in the day amid expectations that the Fed will hike interest rates in December pushed prices lower. Gold Futures - Dec 17 fell as much as 0.12%, to settle at $ 1,292.24.
Oil prices rose for the third day in a row on signs that markets are gradually narrowing after years of oversupply, although the outlook for 2018 is still less certain. On the release front, traders are awaiting U.S. fuel inventory data on Wednesday and Thursday for indicators on price direction.
Crude Oil WTI Futures - Nov 17 rose as much as 0.27%, to settle at $51.06, while Brent Oil Futures - Dec 17 was up 0.26%, to settle at $ 56.76.
Economic Calendar (all times in GMT)
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