The U.S. Dollar was flat overnight with the Bloomberg Dollar Spot Index dropping only 0.1%.
There is a slew of domestic economic data due out this morning followed by Federal Reserve meeting minutes and all have the chance to move the buck in thinning markets.
First up were durable goods which showed a 1.0% increase in orders, besting estimates of a 0.4% improvement. Jobless claims registered largely within estimates. Later, S&P Global will release its readings on manufacturing and services in the United States. The University of Michigan sentiment gauge will hit the wire at 10 a.m.
The largest risk event continues to be the release of the minutes of the most recent Federal Reserve meeting. Traders will be trying to balance the Fed’s tone at the meeting against more recent data that showed inflation could have peaked last month. We expect trading conditions to be thin this afternoon as traders head off for an early Thanksgiving break so any surprises could cause outsized moves..
What to Watch Today…
- Offices are closed on Thursday, November 24th, for the holiday
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The Canadian dollar was one of the few currencies to lose ground against the greenback. Indeed, the 0.3% decline makes it the biggest loser among its G10 peers. The decline in the loonie can likely be attributed to the 2.3% drop in the price of oil. Bank of Canada Governor Tiff Macklem will speak before the parliamentary committee later today to discuss the central bank’s outlook on the economy and monetary policy. There is no major data slated for release in Canada today.
The British pound was the biggest mover overnight, albeit a modest half-a-percent gain against the greenback. The pop higher came after the United Kingdom’s Supreme Court threw out an attempt by the Scottish government to call a second independence vote.
S&P Global Purchasing Manager’s Index for the U.K. provided some rare optimism for the United Kingdom. Although the composite print beat expectations the 48.3 reading is still below the growth/contraction level of 50.0.