Market Drivers December 4, 2017
Buck sees relief
UK Construction beats
Nikkei 0.49% Dax -1.08%
Oil $57/bbl
Gold $1281/oz.
Bitcoin $9950

Europe and Asia:
GBP UK PMI Construction 53.1 vs. 51.0
EUR EZ Sentix 31.1 vs. 33.6

North America:
USD Factory Orders 10:00

The dollar was better bid today with USDJPY gapping higher on the week’s open in Asia as currency markets breathed a sigh of relief that the Flynn indictment may not have been as politically damaging to Donald Trump as initially reported. The passage of the tax cut bill by Senate was also viewed as bullish for US growth with benchmark 10 year yield popping to 2.40% in morning European dealing.

The price action in bonds helped push USDJPY through the 113.00 figure, but the pair stalled at that level for now as markets awaited the arrival of US flows. Both the tax story and the Trump investigation story remain fluid and subject to further headline risk this week, but the markets will also begin to focus on US economic data, as we will get the final read on the US economy this week ahead of Fed’s FOMC policy meeting later this month.

Today’s calendar is barren and barring any further news on the two main stories the dollar will likely continue to drift higher especially if US rates remain bid. Investor sentiment has improved markedly over the weekend and the spillover should continue for rest of the day.