Oil and LNG Tankers Turn Back as Strait of Hormuz Security Risks Escalate 
Iran Targets U.S. Bases in Bahrain, Kuwait as Hormuz Conflict Escalates and Oil Prices Jump 
Asian Stocks Slip as AI Chip Valuation Fears, Rising Oil Prices Weigh on Markets 
RBNZ Raises Interest Rates to 2.50%, Signals More Tightening as Inflation Risks Persist 
Oil Prices Jump as Middle East Tensions Shake Markets, AI Rally Loses Steam 
Gold Prices Slip as Stronger Dollar, Fed Rate Outlook Weigh on Bullion 
US Launches New Iran Strikes as Strait of Hormuz Conflict Escalates, Oil Prices Rise 
Venezuela Earthquake Death Toll Climbs to 3,811 as Government Seeks Sanctions Relief 
Expectations of substantial fiscal stimulus in the form of tax cuts and more infrastructure spending have risen after Donald Trump’s election victory. Hopes of fiscal stimulus have caused benchmark 10-year yields to rise by around 80bps since the election. 30-year yields increased above 3% for the first time since January.
It remains to be seen if President-elect and the Republicans in Congress will agree on the terms. The size and timing of any potential fiscal boost to the economy are yet to be determined. Moreover, any positive impact to economic growth from fiscal measures could be offset by the new administration’s potential stance on trade and immigration.
US economic growth has picked up after a weak first half. The latest economic data paint a more positive picture of the economy for the second half of the year. Q3 GDP growth was the strongest for two years and is expected to remain firm in Q4. November payrolls rose by 178k and the unemployment rate dropped to 4.6 percent, but earnings growth remains tepid.
"After the December rate rise, we look for two further hikes in 2017," said Lloyds Bank in a report.
FxWirePro's Hourly USD Spot Index was at 39.4693 (Neutral) at 1325 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
