Forex Weekly Outlook Nov. 30-Dec. 4

10 and one 10 us dollar bill

Image Source: Unsplash

The US dollar continues to struggle against the major currencies. Will the greenback turn things around this week? Highlights include PMIs as well as GDP reports in Canada and Australia. The week ends with US nonfarm payrolls, which is a market-mover.

German GDP bounced back in the third quarter with a gain of 8.5%. This follows a decline of 9.7% in Q2. In France, GDP jumped 18.7% in Q3, beating the forecast of 18.2%.

It was a tale of two sectors for British PMIs. The Manufacturing PMI improved from 53.3 to 55.2, pointing to strong expansion. However, the Services PMI fell into contraction territory, from 52.3 to 45.8 points.

There was grim news from the BoE, as the BoE Monetary Policy Report projected a contraction of 2% in the fourth quarter. This was followed by Finance Minister Sunak’s spending review, in which he said that the Office of Budget Responsibility had projected a GDP decline of 11.3%.

In the US, PMIs for October indicated stronger growth in the manufacturing and services sectors. Services PMI improved to 57.7, as the index accelerated for a seventh straight month. Manufacturing PMI climbed to 56.7, up significantly from 53.3 beforehand. Both PMIs were well into expansionary territory, which indicates that the economic recovery continues to gain traction.

Unemployment claims climbed for a second straight week, with a reading of 778 thousand. This was much higher than the estimate of 732 thousand. Durable goods orders reports were mixed. The headline figure slowed to 1.3%, down from 1.9%. However, the core release climbed from 0.8% to 1.3%.

The week wrapped up with the FOMC minutes of the November policy meeting. The minutes showed that officials did not believe any changes were needed to the current bond-purchase scheme of $120 billion/month. At the same time, they were of the opinion that “circumstances could shift to warrant such adjustments.”

1 2
View single page >> |

Disclaimer: Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.