ECB’s Lane: Fair to say that bar for another QE extension is higher – Boersen Zeitung In an interview with German daily news Paper Boersen, European Central Bank governing council member Philip Lane noted that it would be fair to say that the bar for another QE extension was higher.
Key quotes (via LiveSquawk)
Inflation doesn't have to reach target before policy change is discussed.
Can have more active, less gradual adjustment once better inflation signals come in.
Policy can be adjusted more decisively once likelihood of reaching inflation goal rises.Read More →

Gold sticks to small gains above $1280, Senate's tax plan awaited Gold eases off multi-week highs on DXY recovery. US T-bond yields support the greenback in the NA session. Wall Street stays nervous ahead of the Senate tax plan. The XAU/USD pair, which advanced to its highest level since October 20 at $1288, lost its traction in the NA session and erased a portion of its daily gains. As of writing, the pair was trading at $1283, up only 0.1% on the day.
The pair's upsurge during the first half of the day was fueled by the broad-based greenback weakness. However, after dropping to the 94.40 handle, the US Dollar Index staged a modest recovery supported the solid performance of the US T-bond yields. At the moment, the 10-year T-bond yield is up 1.1% while the DXY is still down 0.2% at 94.60.
On the other hand, the uncertainty surrounding the differences between the Senate and the House GOP tax bills forces investors to stay away from stocks on Thursday, reflecting a mixed mar..Read More →

US House Ways and Means Chairman Brady: My panel will finish work on Thursday on tax bill The US House Ways & Means Chairman Rep. Kevin Brady recently crossed the wires saying that his panel would finish their work on the tax bill on Thursday. Brady further added that the House tax bill would adhere to $1.5 trillion limit on the added debt created by the legislation, as per Reuters reports.Read More →

US: Sales of merchant wholesalers were $480.5 billion, up 1.3% from August “September 2017 sales of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $480.5 billion, up
1.3 percent from the revised August level and were up 8.5 percent from the September 2016 level,” the US Census Bureau announced on Thursday.
Key highlights
The July 2017 to August 2017 percent change was revised from the preliminary estimate of up 1.7 percent to up 1.9 percent.
Total inventories of merchant wholesalers, after adjustment for seasonal variations but not for price changes, were $609.5 billion at the end of September, up 0.3 percent from the revised August level.
Total inventories were up 4.6 percent from the revised September 2016 level.
The September inventories/sales ratio for merchant wholesalers, based on seasonally adjusted data, was 1.27. The September 2016 ratio was 1.32.Read More →

US Dollar pares initial losses, back near 94.80 DXY found support in the 94.55/50 band. US 10-year yields rebounded beyond 2.34%. Attention remains on US tax reform. After bottoming out in daily lows around 94.50, the US Dollar Index (DXY) rebounded and tested the 94.80 area, where it is now trying to consolidate.
US Dollar focused on US politics
The index seems to have found some dip-buyers around session lows in the boundaries of the 94.50 area, managing to rebound on the back of a better performance in yields of the US 10-year benchmark.
In fact, yields clinched daily tops above the 2.34% level earlier in the session, around 3 bps higher than daily lows.
In the meantime, the buck remains under pressure in light of headlines coming from the US political scenario, where the Republicans-led tax reform plan should take centre stage later in the NA session.
In the US data space, initial claims rose higher than expected on a weekly basis, although they managed to drag the 4-week aver..Read More →