U.S. Session Forex Recap – Nov. 25, 2015

  • U.S. Q3 GDP reading upgraded from 1.5% to 2.1%
  • U.S. Nov CB consumer confidence down from 99.1 to 90.4 vs. 99.3 forecast
  • Richmond manu index fell from -1 to -3 vs. 0 consensus
  • Fed discount rate meeting: More members voted for a hike

The Greenback had a mixed forex performance today, making headway against the pound while giving up ground to the comdolls and the Japanese yen.

Major Events:

Mixed U.S. data – Following yesterday’s downbeat medium-tier releases, Uncle Sam printed a few more reports in the red again. The November CB consumer confidence index showed a sharp drop from 99.1 to 90.4 versus the projected 99.3 reading, indicating weaker optimism this month. The Richmond manufacturing index fell deeper into contractionary territory, dropping from -1 to -3 in November instead of climbing to 0.

On a more upbeat note, the Q3 GDP reading enjoyed a significant upward revision from the initial 1.5% estimate to 2.1%, enough to remind most market watchers that the U.S. economy is faring much better than most of its peers in the developed world.

Fed deposit rate meeting minutes – Remember that unscheduled meeting that Fed officials had earlier in the week? Well, the policymakers just printed the transcript of that huddle and revealed that more members voted to hike deposit rates this time.

Eight members voted to increase deposit rates in their earlier meeting while nine voted to hike this time. Only three remaining members aren’t on board with this, as a couple urged to keep the status quo while one voted for a cut. If you’re wondering what the fuss is all about, lemme tell you that increasing deposit rates would make it easier for the Fed to proceed with their gradual tightening cycle.

Major Currency Movers:

USD – Even with its mixed performance, the U.S. dollar was able to bust a few good moves against its forex peers.

GBP/USD broke below the 1.5100 mark and is down to 1.5083 (-0.26%), USD/CHF is down 24 pips after getting rejected at the 1.0200 barrier once more (-0.24%), and USD/JPY is down 33 pips to 122.50 (-0.27%). AUD/USD is up 55 pips to .7246 (+0.76%), NZD/USD is up 23 pips to .6549 (+0.49%), and USD/CAD is down 63 pips to the 1.3300 handle (-0.45%).

GBP – The British pound was still reeling from the downbeat BOE Inflation Report hearings earlier in the day.

GBP/JPY is down 95 pips to 184.75 (-0.51%), EUR/GBP is up 28 pips to .7059 (+0.40%), GBP/AUD is down 202 pips to 2.0815 (-0.96%), and GBP/NZD is down 151 pips to 2.3029 (-0.65%).

Watch Out For:

  • BOJ monetary policy meeting minutes at 11:50 am GMT
  • Australian quarterly construction work done at 12:30 am GMT (-1.8% expected, +1.6% previous)

See more:

Asian Session Recap

London Session Recap

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