The previous day, FX trading was very familiar with what occurred late. USD / JPY took barely noticeable advantage of the risk-on context as markets even now see signs of benevolence from the United States and China for a first-phase trade deal. USD / JPY just under 109 closed the day. EUR / USD exchanged on Friday's basis. Later, in the big figure of 1.00, EUR / USD dropped back down as markets were displeased with a lackluster PMI print. German IFO confidence and trust also gave symptoms of bottoming, yesterday. The release was the same as planned, however, but it failed to persuade euro bulls. EUR / USD dropped by nearly 1.10 and closed at 1.1014.
Asian equities continue to stay positively oriented and the benefits are less marked relative to last morning's WS (new S&P and Nasdaq records). In an evening address, Fed's Powell said it was necessary to follow a current policy stance. He saw that glass was far more than half for the economy in a hopeful way. His remarks still did not affect US yields or the currency. The 109 barrier is still a fight of USD / JPY. EUR / USD is around 1.1015. Australian dollar traders were following RBA's Lowe early in the afternoon.
Today, with many previous data released on Thanksgiving (Thursday), the American eco calendar is lined with stocks, trade balance, housing information, and consumer confidence. Of late, the impact of US eco data on USD trading has been only reduced. Consumer trust and the trade balance may have a certain effect on the dollar. For overall USD earnings (DXY), we continue to expect a big upwards surprise because the bar for a Fed rate increase is quite high.
Today, after a moment of weakness after disappointing UK PMIs last week, the expectations for Sterling strengthened further. It is still predicted that the Conservatives would win majority voting in Congress, even though polls show small changes in voter intentions. Also printed CBI retail data is stronger than expected. Closing EUR / GBP 0.8539. The calendar of the UK is now slender. We hope sterling will remain strong. The next major support is EUR / GBP 0.8472.
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