A pickup in COVID-19 cases across Europe, along with growing inflation concerns, weighs on risk sentiment as the dollar continues its march higher. Markets will be data focused today ahead of tomorrow’s Thanksgiving holiday. Jobless claims, GDP, Durable Goods, PCE, New Home sales, Univ. of Michigan sentiment and this month’s Fed meeting minutes are all set to be released.
"He is a wise man who does not grieve for the things which he has not, but rejoices for those which he has."
November 24, 2021
EUR/USD 1.1196 GBP/USD 1.3336 USD/CAD 1.2694 AUD/USD 0.7189 USD/JPY 115.33 USD/CNH 6.3924 USD/ILS 3.1487 USD/MXN 21.5271 USD/CHF 0.9366 USD/INR 74.3950 USD/BRL 5.6020 USD/SGD 1.3690 USD/DKK 6.6417 USD/SEK 9.1233 USD/NOK 8.9753
Fed Chair Powell pledged to use the Fed’s policy tools to help contain inflation and keep it from being entrenched. Jobless claims sent the dollar higher after a reading showed claims at the lowest level since 1969.
Markets will watch the full data calendar today and will closely pay attention to PCE data which is the Fed’s preferred inflation measure. Markets expect the metric to accelerate to 4.1%.GBPSterling has continued its decline for a third consecutive day, stabilizing below the 1.3400 level, as Brexit headlines continue to weigh on sentiment. GBP/USD hit a new yearly low of 1.3342. Manufacturing and Services PMI both beat expectations but had little impact on the currency.EUR
The euro fell below 1.12 as the greenback held strength ahead of key data out this morning and as German IFO showed that business climate contracted for the fifth month. ECB Vice President Luis de Guindos made comments that some factors driving inflation appear to be structural.CAD
The Canadian dollar continues to fall amid a strong USD. Despite many nations releasing reserves of crude oil, the price per barrel remains close to $78.50. Focus shifts to OPEC+ and how they might respond.ASIA/PACIFIC
USD/JPY levels climbed above 115.00 as the dollar directs markets today.
AUD/USD struggles under sustained dollar buying and slips to the lowest levels since early October.
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