The US$ is mixed on Thursday, with market sentiment stabilising somewhat on the back of a bounce in the stockmarkets after two days of steep declines. The commodity currencies are firmer, the EU majors more or less unchanged and the Yen mildly weaker, as safe haven demand subsides given that US stocks are heading into the session close up by around 0.8%-1.2%. The US$ itself was somewhat subdued and not helped at all by some soft US data, with the October durable goods orders at -4.4% (vs -2.6% expected) while core durable goods rose 0.1%, below estimates for a 0.4% rise.
WTI has had a bounce, up 2.2% while the metals are also firm (+0.5%), mostly on the back of the softer dollar.
Elsewhere, the EU has, as expected, rejected the Italian Budget plan, and Italy is now facing EU sanctions. As with Brexit, this story won’t go away and seems likely to create headwinds for the Euro.
Looking ahead, it seems set to be a choppy and directionless session given the US Thanksgiving holiday and liquidity will be thin. Pints of interest though will include the NZ Visitor Arrivals, Japan CPI, UK Inflation Report Hearing and ECB Minutes as well as the Preliminary EU Consumer Confidence for November.
Economic data highlights will include:
Thur: US Thanksgiving Day, NZ Visitor Arrivals, Japan CPI, UK Inflation Report Hearing, ECB Minutes, EU Consumer Confidence, US Jobless Claims
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