U.S. Session Forex Recap – Nov. 24, 2015

  • U.S. Nov flash manu PMI down from 54.1 to 52.6 vs. 54.0 forecast
  • U.S. existing home sales at 5.36M in Oct. vs. 5.39M consensus, 5.55M previous
  • Fed head Yellen reiterates the gradual pace of rate hikes
  • Fed made unscheduled meeting to discuss deposit rates

The Fed announcement turned out to be a dud, as policymakers simply huddled among themselves to discuss the deposit rate, but that didn’t stop the Greenback from advancing against its forex peers.

Major Events:

Bleak U.S. data – The latest batch of reports from Uncle Sam printed weaker than expected results, with the November flash manufacturing PMI falling from 54.1 to 52.6 instead of showing the projected 54.0 reading and existing home sales dropping from 5.55 million to 5.36 million in October.

The newly-scheduled Fed announcement, which had forex market participants buzzing about potential forward guidance ahead of the December FOMC statement, didn’t contain any surprises as policymakers discussed possible deposit rate adjustments among themselves. Still, Fed head Janet Yellen emphasized that policymakers expect the pace of tightening would be gradual, reminding traders that the U.S. central bank might be gearing up for a liftoff soon.

Major Currency Movers:

USD – The Greenback chalked up another winning day against most of its forex rivals, even though U.S. economic reports failed to impress.

EUR/USD dipped briefly below the 1.0600 major psychological support to a low of 1.0591, GBP/USD edged further below the 1.5150 mark to a low of 1.5105, and USD/CHF continued to hold on to the 1.0200 handle. USD/JPY, on the other hand, is still showing signs of weakness and is down to 122.83.

CAD – Oil-related news continued to rock the Loonie’s world, with market watchers now zooming in on what the OPEC might have up its sleeve.

USD/CAD tossed and turned but is still hovering around 1.3365, CAD/JPY popped up to a high of 92.35 then retreated to 91.91, EUR/CAD bounced off support at 1.4160 and is up to 1.4213, and AUD/CAD is trying to stay above the .9600 mark.

Watch Out For:

  • Japanese flash manu PMI at 2:35 am GMT (52.1 expected, 52.4 previous)

See more:

Asian Session Recap

London Session Recap

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