FXStreet (Delhi) – Lee Hardman, Currency Analyst at MUFG, notes that the foreign exchange market has remained relatively stable in the Asian trading session with US markets closed today for the Thanksgiving holiday.
Key Quotes
“The US dollar index is still holding close cyclical highs at just below the 100.00-level. We continue to expect the US dollar to record new cyclical highs before year end although it may struggle to break through key resistance in the very near-term.”
“The latest batch of mixed US economic data releases from the US yesterday failed to reinforce the US dollar’s upward momentum. It was revealed that personal spending remained weaker in October and underlying inflation as measured by the core PCE deflator remained subdued increasing by an annual rate of 1.3% supporting very gradual Fed tightening expectations.”
“On a more positive note, it was revealed that the trend in core capital goods orders is now clearly turning higher as the negative impact from the cut back in oil companies spending is now easing. It follows an upward revision to an upward revision to capital investment in Q3 whose positive contribution was raised to 0.55 percentage points to growth.”
“The services PMI survey also revealed that business confidence increased to its’ highest level since April echoing strength already evident in the ISM non-manufacturing survey providing further reassurance that the US economy is still proving resilient to negative external shocks.”
(Market News Provided by FXstreet)