USD Trading Outlook
U.S. Dollar Trading (USD) the ‘risk on’ rally ran out of steam overnight with some mixed US data prompting traders to take profit. Consolidation of the recent gains could continue into the weekend but the EU summit is providing plenty of headline risk. Weekly Jobless Claims jumped to 388k vs. 339k previously. The October Philly Fed improved to 5.7 vs. 1.0 previously. Looking ahead, September Existing Home Sales forecast at 4.75mn vs. 4.82mn previously.
U.S. Dollar Trading (USD) the affirmation of Spanish rating by Moody’s helped Spanish bonds yields fall yesterday ahead of the EU summit. The EUR/USD continued to push higher and lead the rest of the FX majors higher. US Stocks have enjoys strong gains so far this week and could retest year highs if the rally continues. US Housing Data was strong with a 15% jump in September Housing starts and 11% jump in permits. Looking ahead, Weekly Jobless Claims forecast at 365k vs. 339k previously. Also October Philly FED index forecast at 1 vs. -1.9 previously.
U.S. Dollar Trading (USD) heavy gains in the stock markets in every session yesterday saw the USD sold with demand for riskier assets hurting the safer haven. September Industrial Output increased 0.4% vs. 0.2% previously. There is a lot of event risk on Thursday with the EU summit beginning and Chinese GDP for Q3 being released. Looking ahead, September Housing Starts forecast at 0.77mn vs. 0.85mn previously. Also Weekly Crude Oil Claims forecast at 1.4mn vs. 1.7mn previously.
U.S. Dollar Trading (USD) the Dollar had a mixed day gaining in Asia before reversing sharply during the US session as stocks rallied. Better than expected US data and earning is helping keep risk appetite strong and this is pressuring the safe haven USD. US September Retail Sales gained 1.1% vs. -0.8% forecast m/m. Looking ahead, September Industrial Output forecast at 0.2% vs. -1.2% previously. Also September Core CPI forecast at 0.2% vs. 0.1% previously.
U.S. Dollar Trading (USD) markets have turned negative in recent sessions with risk off trading on Friday spilling over into Monday’s trade. Spain was once again the center of attention with concerns that the ESM would not have enough money and then later that Spain will not request aid until November. Fresh EUR/USD selling is keeping the single currency under 1.3000 and helping the Dollar remain strong. Looking ahead, September Retail Sales forecast at 0.7% vs. 0.9% previously.
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