The US dollar had a rough run during the Thanksgiving holidays as traders continued to adjust positions on account of the less upbeat outlook on inflation shared by Yellen and most of the FOMC members. Flash manufacturing and services PMIs also fell short of consensus. New home sales and speeches by members Kashkari and Dudley are on today’s docket.
The euro held on to most of its wins thanks to another set of upbeat data. The German Ifo business climate index ticked higher from 116.8 to 117.5 to reflect better optimism, which could then translate to stronger performance. There are no reports due from the region today.
The pound was able to chalk up some gains towards the end of the week but traders still seem wary of Brexit risks. High Street lending ticked lower from 41.6K to 40.5K versus the estimated 40.9K figure. MPC member Haldane has a speech scheduled today.
The franc continued to rake in gains against most of its peers as traders dumped the dollar and moved to other safe-haven holdings. There were no reports out of Switzerland but the improving sentiment in the euro region appeared to benefit the currency as well. There are still no reports lined up today, so the Swiss currency could take its cue from market sentiment and euro price action.
The yen weakened towards the end of the previous week as profit-taking seemed to be in play. However, the Japanese currency is off to a strong start this week as it ticked higher across the board. There are no major reports lined up from Japan but bond yields and market sentiment could still yield big moves for yen pairs.
Commodity Currencies (AUD, NZD, CAD)
The comdolls were able to advance against the dollar and yen towards the end of the previous week but appear to be off to a rocky start this week. There were no reports out of their economies then and none are lined up today, so market sentiment could be in the driver’s seat. Pricing in ahead of the OPEC meeting could come into play, though.
[I]By Kate Curtis from [URL=”http://www.tradersway.com”]Trader’s Way[/URL][/I]