Daily FX Trading Update: Downbeat BOE Weighs on GBP – Nov 25, 2015

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Daily FX Trading Update: Downbeat BOE Weighs on GBP - Nov 25, 2015
USD 
The US dollar functioned mostly as a counter currency in recent trading sessions, ending up with a mixed performance against its forex peers. Data from the US economy came in weaker than expected, as the CB consumer confidence index slumped from 99.1 to 90.4 in November and the Richmond manufacturing index indicated a drop from -1 to -3. For today, durable goods orders, initial jobless claims, and personal spending and income data are all lined up.
EUR
The euro managed to stay afloat against the dollar and recover against the pound, as traders probably booked profits off their recent short positions. Data from the euro zone has surprised to the upside once more, with the German Ifo business climate index rising from 108.2 to 109.0. Only the Italian retail sales report is due today and this might not have a huge impact on the shared currency’s movement.
GBP
The pound was in a very weak spot after the BOE Inflation Report hearings revealed a downbeat tone. According to Governor Carney, rates will remain low for quite some time, a different view from what he expressed in the past. The UK second estimate GDP reading is due today and no revisions from the initial 0.5% estimate are eyed.
CHF
The franc took its cue from the euro and regained a bit of lost ground. There were no major reports due from Switzerland then while today has the UBS consumption indicator on deck. Any improvement from the earlier 1.65 reading could spur more gains for the Swiss currency.
JPY
The yen gave up some ground against its peers, except for the US dollar and the British pound. Japan’s flash manufacturing PMI for November beat expectations and climbed from 52.4 to 52.8 instead of falling to 52.1. For today, the BOJ monetary policy meeting minutes are due.
Commodity Currencies (AUD, NZD, CAD)
The comdolls continued to rally against their rivals, with the Aussie leading the pack. There were no reports released out of Australia but RBA Governor Stevens’ speech seemed to highlight the central bank’s shift to a less dovish stance. Australia’s quarterly construction work done report is up for release next.
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.