Forex Afternoon Wrap – 24/11

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US Q3 GDP rises 2.1% on second revision

  • Japan Flash manufacturing PMI 52.8 vs. 52.1
  • German Final GDP q/q 0.3% vs. 0.3%; y/y 1.8% vs. 1.8%
  • German Ifo Business climate 109.0 vs. 108.2; Ifo expectations 104.7 vs. 104.0
  • RBA’s Stevens speech
  • ECB’s Nouy speech
  • UK CBI Reported sales 7 vs. 25
  • ECB’s Mersch speech
  • US GDP q/q 2.1% vs. 2.1%
  • US GDP price index q/q 1.3% vs. 1.2%
  • PCE Annualized q/q 3.0% vs. 3.2%
  • Core PCE annualized q/q 1.3% vs. 1.3%

Later

  • S&P/CS HPI
  • Consumer confidence

The markets opened this morning on a quiet note, coming off the Fed’s closed door meeting jitters yesterday. There was much ado about nothing as the Fed kept the meeting details confidential. In Asian trading session, the commodity risk currencies, and mostly the Australian dollar took an early lead posting gains of 0.29% at the time of writing. AUDUSD was trading near daily highs of 0.7218 in a bid to recover the declines from yesterday. The NZDUSD attempted to recover off yesterday’s lows but failed near daily highs above 0.6534. At the time of writing, NZDUSD is down -0.13% for the day but well above yesterday’s lows.

The Japanese Yen was firm in today’s trading session and continued to post a second day of gains against the Greenback. USDJPY was down -0.30% for the day at the time of writing, with the currency pair testing the daily lows near 122.41 before attempting to pullback. Japan’s Flash manufacturing PMI was strong, rising 52.8 above estimates of 52.1

In the European trading session, the German quarterly GDP came out as expected rising 0.3% for the quarter and up 1.8% annualized. German Ifo business climate was also upbeat, rising to 109.2 against estimates of 108.2. The Euro managed rally today rising 0.20% for the day and remains well supported above yesterday’s high at 1.0656. At the time of writing, EURUSD was seen testing the highs above 1.06615.

The British Pound continued to trade weak, losing -0.33% for the day. GBPUSD is currently trading near the lows of 1.507 as dovish comments from BoE’s Mark Carney kept the pressure on the Cable. In the inflation report hearing, Carney noted that interest rates in the UK were likely to remain low in the near term.

There were a few Central bank speeches from the RBA and the ECB but none major enough to take notice about.

The US trading session geared up to the second estimates on the third quarter GDP. Data released earlier today showed the US economy expanding at a pace of 2.1% as expected, up from 1.5% first estimates. The GDP price index also increased a notch higher to 1.3%, while the annualized PCE for the quarter remained weaker, rising 3.0%. The US Dollar was largely muted on the news but looks to be well supported to the upside. USDCAD is trading flat for the day, down -0.03% after a brief dip to daily lows at 1.3325.

Gold prices saw a strong rally today, currently up 0.79% as the precious metal tested daily highs above 1080.45 after lifting off the lows near 1068 yesterday. The remainder of the evening will see the US S&P Case Shiller Housing price index and the CB consumer confidence data.

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