- The US Dollar is lower this morning against all its peers, erasing half of the July-October rally and preparing for its longest losing streak since 11 October. Market sentiment on the US Dollar has drastically shifted as major index data suggests further deterioration of the US economy, unless we see a solid batch of data that can challenge the Fed dovishness. The US Dollar Index is lower by 0.18% this morning.
- It is a quiet week, especially in the US, with Thanksgiving coming up this Thursday. The greenback’s path is more dependent on the Euro-area and UK PMIs than the FOMC minutes, which many investors consider no longer appropriate.
- The Bank of England governor Andrew Bailey advised last night that the BOE may have to lift interest rates again if inflation proves to be resilient. This remark comes in line with the BOE guidance for November and just shows that the central bank is still ready to act, if needed. Sterling advanced against the US Dollar overnight, crossing 1.25 and trading as high as 1.2540. Next Resistance is found at 1.2668 (May’s Pivot).
- Not much data until Thursday in the Euro-area but the Euro has been trading well, slowly advancing, and currently trading at 1.0953, with the next resistance at 1.10 (psychological level), although this level may only be tested near or on the PMI data release.
