The dollar’s swift November decline has continued today, leading to a 0.14% drop in the U.S. dollar index which is on track to revisit its monthly low at 103.178. The DXY is -3.16% since October’s close at 106.66 which was the dollar’s highest monthly mark in a year. Support is near 102.00 and lower at 99.50.
The USD is lower against all G10 currencies, with losses ranging from -0.62% vs. NOK to -0.02% vs. CAD. The dollar’s top 10 losses against the major pairs during November: -7.24% vs. SEK, -5.94% vs. MXN, -4.81% vs. NOK, -4.29% vs. AUD, -3.91% vs. GBP, -3.59% vs. KRW, -3.57% vs. EUR, -3.44% VS. CHF, -3.30% vs. BRL, and -2.76% vs. TWD.
The U.S. Treasury yield curve has significantly flattened this month, seen primarily in the long-term tenors (5yr-30yr) which have declined nearly 50 basis-points on average. Lower yields have driven a move to ‘risk’ assets, lifting equities such as the S&P500 Index by 10.73% since the October 27th low and the Nasdaq100 Index by 12.70% over the same period.
The price of gold reached $2,018.21/oz. today, its highest since the May 16th high at $2,018.38.
Economic data releases for the week include today’s New Home Sales for October (-5.0% est.), tomorrow’s Consumer Confidence, third quarter GDP on Wednesday, and Personal Income & Spending on Thursday.
