Moments ago, all three main US FX pairs, the yen, euro and yuan snapped higher, following a CNBC report according to which the Trump administration is studying ways to penalize countries whose currencies it believes are undervalued. CNBC cited two unidentified people with direct knowledge of the review who work within the administration.
In the third and final estimate of Q4 GDP, the BEA revised the previous estimate of 1.8% notably higher to 2.1%, driven by a sharp upward revision to consumer spending, which rose 3.5% in Q4, after rising 3.0% in Q2, and contributed 2.4% to the bottom GDP line - in other words consumption alone was more than the entire GDP increase- up from 2.05% in the second revision.
Brexit Gold Buying - UK Demand for Gold Bars Surges 39%
Asian shares and oil are lower, European shares are little changed, and S&P futures are fractionally in the red after gaining for most of the overnight session, perhaps troubled by warnings from two Fed presidents who warned that markets and valuations appear frothy, and the Federal Reserve may have to raise rates more times than currently forecast. The latest round of Fed hawkishness helped the dollar gain further after recent losses which earlier this week pushed it to 4 month lows.
Over the past dew days, Bloomberg market commentator Mark Cudmore has been decidedly skeptical of any rebound observed in US stocks, and overnight he did not change his sentiment despite what some have said is an attempt for the reflation rally to reassert itself. In a note titled "Why I Don’t Believe in This U.S. Equities Bounce" he explains why, giving seven reasons why despite stocks seemingly poised for a third day of gains, he refuses to BTD and chase the latest rally.
From Bloomberg