Daily FX Trading Update: Dollar Advances Despite Weak Data – Nov 24, 2015

Daily FX Trading Update: Dollar Advances Despite Weak Data - Nov 24, 2015
The US dollar still managed to dominate against its forex peers even with weaker than expected economic data. The flash manufacturing PMI for November showed a decline from 54.1 to 52.6, reflecting a slower pace of growth. Existing home sales fell from 5.55 million in September to 5.36 million in October. For today, the CB consumer confidence index is due and a rise from 97.6 to 99.3 is eyed. Aside from that, the preliminary GDP reading is up for release and any revisions could be crucial to dollar price action.
The euro resumed its tumble at the start of the week, dipping below the 1.0600 mark against the dollar. Data from the euro zone was actually mostly stronger than expected, with only the French flash services PMI falling short. The German Ifo business climate index is due today and a small rise from 108.2 to 108.3 is expected, indicating a small improvement in confidence.
The pound sold off against most of its forex counterparts, even though there were no major reports out of the UK. The BOE inflation report hearings are scheduled today and more downbeat comments are expected, especially since the latest policy statement and minutes sounded less upbeat. UK CBI realized sales data is also due today.
The franc managed to hold its ground yesterday even with the euro resuming its tumble. There have been no reports out of Switzerland and today has the employment level on tap. Any signs of improvement could spur gains for the franc while a reduction could lead to losses.
The yen was able to outpace its forex rivals, including the US dollar, even though Japanese traders were out on a holiday yesterday. The flash manufacturing PMI is due today and a dip from 52.4 to 52.1 is expected, reflecting a weaker pace of industry expansion.
Commodity Currencies (AUD, NZD, CAD)
The comdolls returned some of their recent wins since there were no major reports to allow the rallies to carry on. The Loonie got a bit of a boost from speculations that the OPEC might finally announce a reduction in oil supply during their meeting next week. RBA Governor Stevens has a testimony lined up today.
To contact the reporter of the story: Samuel Rae at samuel@forexminute.com
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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.