Mixed week for the Greenback as counter currency flows took center stage during a holiday shortened week in the U.S.
United States Headlines and Economic data
- Global risk sentiment was the main driver for most of the week, leaning positive thanks to U.S.-China trade headlines. China to raising penalties on IP theft in trade war compromise and news of China and the U.S. ‘very close’ to phase one trade deal were likely the catalysts, and we saw the Greenback behave as a safe haven asset in reaction to this, falling against the high-yielders/risk currencies while gaining against the yen (the usual ultimate safe haven currency)
- The Chicago Fed National Activity Index fell to -0.71 in October 2019 from -0.45 in the previous month
- Washington expects to sign Phase One trade deal with Beijing in November
- Pelosi says U.S.-Mexico-Canada trade deal is ‘within range’
- Fed head Powell: Central bank is “strongly committed” to inflation goal, current policy likely to remain appropriate
- The U.S. international trade deficit was $66.5B in October, down $4.0B from $70.5B in September
- Richmond Fed: Manufacturing Activity Softened in November
- Philly Fed November 2019 Nonmanufacturing Business Outlook Survey: continued expansion in nonmanufacturing activity in the region
- US consumer confidence falls for fourth consecutive month
- Dallas Fed President Robert Kaplan says the fourth-quarter economy is ‘weak’
- Home price gains accelerate in September, S&P Case-Shiller Index says
- U.S. new home sales fall in October; September revised higher
- Fed’s Brainard argues for capping interest rate levels during the next downturn
- Trump Says China Deal in ‘Final Throes’ as Top Officials Speak
- US economy grew at a moderate 2.1% annual rate in the third quarter
- U.S. core capital goods orders post biggest gain in nine months
- U.S. core personal consumption expenditures (PCE) increased +0.1% in October.
- Pending home sales fall 1.7% in October, as housing shortage worsens
- Chicago PMI shows region’s economic health contracting but not as weak as October
- China threatens to take ‘strong counter-measures’ against US after Hong Kong bill signings – this news sparked a big reaction in the financial markets, and prompting the U.S. dollar to move lower against the majors in the morning U.S. session.