A statement from NY Fed clarifying an.........>

FOREX: A statement from NY Fed clarifying an earlier speech from its Pres

Williams surprised markets early doors, prompting the greenback to appreciate

across the board. The original speech called for "swift [central bank] action

when faced with adverse economic condition." Accompanied by dovish Fedspeak from

elsewhere, it knocked USD on its head yesterday. It was clarified that Williams'

remarks were academic, not relevant to policy action at the next FOMC meeting.

- USD strength faded gradually for the benefit of high-beta FX bloc, which was

bolstered by advancing oil prices after U.S. Pres Trump informed that U.S. Navy

shot down an Iranian drone near the Strait of Hormuz. 

- Safe havens declined with JPY leading losses. Early sell-off vs. USD had

applied weight before further pressure was added from rallying regional stock

indices, which took their cue from their U.S. equities, as NY Fed's statement

failed to significantly limit broader exp. of easing at the next FOMC meeting.

- Focus turns to U.S. U. of Mich. Sentiment, Canadian retail sales, German PPI &

UK public finances data. Fed's Bullard and Rosengren are the last Fed speakers

before the blackout; the latter will appear on a panel with BoJ Gov Kuroda.