Forex Market News

On Thursday, USD weakness continued, which allowed the Dollar Index to fall more setting new mid-term lows. We were still digesting dovish Powell from Wednesday but also got fresh data from the US. Both, PCE Price Index and ISM Manufacturing PMI came worse than expected. Interestingly the latter one came below 50 for the first time since June 2020.

The last day of November was definitely very eventful on the market. In the first half, we received interesting inflation data from Australia and Eurozone, where numbers came lower than expected and lower than in previous months. Then we received mediocre ADP data, which were quickly covered by strong GDP print and nice JOLTS Job Openings. Crème de la crème was the speech from Jerome Powell at the end of the day, where he claimed that the FED will go slow from now on, which is a dovish approach in eyes of the market.

Inflation is for sure one of our biggest concerns this year but most recently, we have signs that it may be peaking and the actions taken by central banks may be finally showing some effects. Overnight, we found out the CPI data from Australia, which came at 6.9%, which was lower than the expectations (7.6%) and the number from the previous month (7.3%). Wort noticed that yesterday we got the CPI data from Spain, which did the same: come below 7% and was lower than expectations and the reading from the previous month.

Monday was a correction day on stocks, largely anticipated and quite significant as on many major indices, we managed to retrace all the gains from the previous week. It does not change the overall positive sentiment but of course, may be a start of a larger correction in the mid-term. Indices were so overbought that it was almost impossible for them to continue this winning streak for longer.

Welcome to the NFP week, which has a much busier calendar than the week that just ended. European session just started and we already can see some nice moves on the market, which should have an impact on the trading decisions further down the line.

Last week was positive for the Dollar and many could see the possibility to end the bearish correction on the American currency. It seems that this week will end negative for the Dollar again, which extends the hopes for further USD weakening in December.