Friday, 13 October 2017 08:41 WIB | CURRENCIES |Dolar AS
The dollar and U.S. Treasury yields were poised to end four weeks of gains as confidence in American tax-cut plans waned somewhat and the Federal Reserve signaled that several policy makers are cautious about another 2017 interest-rate hike.
Asian equity-index futures were largely flat after the S&P 500 Index edged lower after a run of gains in global stocks that™s seen historic highs hit this week. U.S. shares were weighed down by declines in JPMorgan Chase & Co. and Citigroup Inc. on concerns about consumer credit and a plunge in revenue from trading. Bitcoin surged to a fresh record, climbing above $5,300, while oil traded around $51 and gold was flat.
Singapore™s dollar headed for a weekly rise after its central bank left monetary policy unchanged and dropped a commitment to keeping its zero currency appreciation stance for an "extended period," reflecting an improved environment for global growth. Focus later turns to China™s trade report and U.S. retail sales and consumer price data. The pound rallied overnight as Handelsblatt reported Europe™s top negotiator may offer the U.K. a two-year transition to stay in the single market as long as Britain meets financial obligations.
The euro remained about a cent above the seven-week low it hit last Friday after a report on plans under discussion at the European Central Bank. ECB officials are considering cutting their monthly bond buying by at least half starting in January, and keeping the program active for at least nine months, according to officials familiar with the debate. Read more about that here.
In the U.S., the Trump administration™s tax plan clouded up as the president was said to voice frustration with certain aspects of the existing framework. Some Congressional Republicans have aired concerns, though Treasury Secretary Steven Mnuchin reiterated his confidence that a plan will get passed this year.
In the latest development on the North Korea front, the yen saw a brief gain after news of a modest earthquake near the site of past nuclear tests in the country. South Korea™s weather agency said it was a natural phenomenon, though the U.S. Geological Survey had no immediate conclusion. Bomb tests have caused some of the previous shaking in the area, but the 2.9 magnitude compares with a reported 6.3 for the H-bomb test in September.