It’s Thanksgiving week, yo!
Will dollar bulls have something to be thankful for in the next few days?
Check out the potential market movers that might affect the Greenback’s price action!
Lower-tier economic releases
- Markit’s flash manufacturing PMI (Nov 23, 2:45 pm GMT) to dip from 53.4 to 52.9 in November
- Markit’s flash services PMI (Nov 23, 2:45 pm GMT) could slip from 56.9 to 55.1
- Preliminary (second) GDP reading (Nov 25, 1:30 pm GMT) set to maintain its 33.1% jump
- Initial jobless claims (Nov 25, 1:30 pm GMT) to print another 730,000 new claimants
- Cure durable goods (Nov 25, 1:30 pm GMT) seen at 0.6% after 0.9% growth in September
- New home sales (Nov 25, 3:00 pm GMT) to improve by 2.2% after 3.5% uptick
FOMC’s meeting minutes (Nov 25, 7:00 pm GMT)
- The Federal Open Market Committee (FOMC) kept its policies unchanged ahead of the U.S. elections
- USD dropped across the board at the time, as Treasury yields dropped and the U.S. equities rallied in anticipation of a Biden win
- Markets don’t expect much from this month’s meeting minutes, though traders will pay close attention to how fiscal support is to the Fed’s confidence and projections
Overall dollar demand
- Rising coronavirus cases and the prospect of lockdown restrictions in several states could limit the dollar’s gains
- Positive vaccine updates could continue to inspire risk aversion and weigh on the safe-haven dollar
- The uncertainty over the U.S. government’s stimulus programs beyond December could inspire risk aversion in the markets
- Lockdowns and the implied lack of activity in other major economies can influence the demand for safe-havens like the dollar
- Brexit negotiations can also affect risk-taking and overall dollar demand
- Stochastic is showing USD’s “oversold” conditions against EUR, GBP, AUD, and NZD
- USD/CHF and USD/CAD are close to the neutral zone on the daily time frame
- Both SMAs and EMAs show the dollar’s short and long-term bearish trends against ALL of its major counterparts
- The dollar has seen the most volatility against the Kiwi, Aussie, pound, and the Loonie in the last seven days