Dollar slips lower but remains close to 14-year peak

Dollar loses some ground but remains broadly supported vs. rivals

Investing.com - The dollar slipped lower but continued to hover near a 14-year peak against the other majors currencies on Thursday, amid sustained optimism over the U.S. economy and expectations for a December rate hike by the Federal Reserve.

Eurozone construction output Sept mm -0.9% vs +0.1% prev

Eurozone  September construction output report 17 Nov

• revised up from -0.9% prev
• yy +1.8% vs +2.1% prev revised up from +0.9%

Softer headline data tempered by upward revisions.
EURUSD 1.0723  EURJPY 117.00 as USDJPY rallies back above 109.00. Great two-way business

The GBPUSD/EURGBP correlation is playing out yet again 17 Nov

EURGBP back up above 0.8600 after 0.8576 lows post-UK retails data and that's keeping a lid on GBPUSD
I said in my earlier assessment that GBP sellers were lurking and so its proved. EURGBP range-trading 0.8575-0.8625 playing out too as per that post.
In the wake of the US election EURGBP fell heavily from 0.9030 and that helped put a base under

Crude Oil Prices Rise on OPEC Maneuvering But Rally May Stall

• Crude oil prices rose most in two months on OPEC maneuvering
• EIA inventory data may undermine momentum if API proves right
• Gold prices try to rebound but Fed-speak may cap follow-through

Crude oil prices posted the largest daily advance in nearly two months amid reports that OPEC members are scrambling to finalize the implementation details of an output cut deal struck in September. The cartel’s Secretary-General Mohammed Barkindo said members are fine-tuning the arrangement as he shuttled between meetings with producers to secure agreement before a formal meeting on November 30.

AUD/USD Breakdown to Turn or Burn on Aussie Employment, US CPI

Talking Points

• AUDUSD at support- broader focus is lower heading into key AU, US data
• Updated targets & invalidation levels
• Looking for trade ideas? Review DailyFX’s 2016 4Q Projections

Recovery in Australia Employment to Encourage AUD/USD Rebound

Why Is This Event Important:
Signs of stronger job growth may encourage the Reserve Bank of Australia (RBA) to carry the current policy into 2017 as ‘members observed that some indicators of domestic inflation cost pressures, such as growth in the wage price index, had stabilised, albeit at low levels, and that underlying inflation was expected to return to more normal levels over time.’ In turn, Governor Philip Lowe and Co. may largely endorse a wait-and-see approach in the year ahead, but another dismal employment report may put pressure on the

Crude Oil Price Forecast: Crude Bounces on Hope OPEC Salvages Deal

The rise in the DXY post-election has presented a specific headwind for Crude Oil. However, the correlation has broken down significantly as volatility has increased through November. However, it stands to reason that further USD strength would continue to put downside pressure on the price of Crude Oil as we saw in H2 2014 when Crude began its descent from $112/bbl as the USD started its initial meteoric rise after a similar stalling pattern from 2012 through H1 2014.
On Tuesday, the Financial Times reported that Saudi energy minister Al-Falih had a message for President-Elect Trump that the U.S., “benefits more than anybody else from global free trade,” and that, “energy is the lifeblood of the global economy.” We’re still in the pre-inauguration period for President-elect Trump, but many will look new information about Trump’s intended Trade deals as well as informal talks being held in Doha on November 17-18 to see if Monday-Tuesday’s rally will follow through.

EUR/GBP Eyeing Support Targets Ahead of UK Jobless Claims

Talking Points

• EURGBP Focus is lower ahead of UK employment data
• Updated targets & invalidation levels
• Looking for trade ideas? Review DailyFX’s 2016 4Q Projections

EUR/GBP Daily

WTI/USD – US Crude Sliding on Oversupply Concerns, $40 Next?

US crude prices haven’t skipped a beat on Monday, as the commodity continues to lose ground. In North American trade, WTI/USD futures are trading at $42.36. Brent crude futures are trading at $43.58, as the Brent premium stands at $1.22. On the release front, it’s a quiet start to the week, with no US events on the schedule. On Tuesday, the US will release key retail sales numbers.

Oil prices continue to slide, as US crude has fallen close to the $42 line,

EUR/USD Weekly Forecast 14 Nov 16

 

Good day fore traders.
Welcome to our weekly review of the EUR/USD currency pair.
The US presidential election came and went. We were aware of the possible volatility. At times it would be prudent to be uncommitted to any position. Remember that the market will always be there for us.

Yen Falls, Ignoring Positive GDP Report

Today’s data showed that Japan’s economy grew faster than was expected, but the Japanese yen hardly paid any attention to the positive report. The currency was down against all its major counterparts, falling to the lowest level since June versus the US dollar.
Japan’s gross domestic product expanded 0.5% in the third quarter of this year according to the preliminary report, exceeding the analysts’ average forecast of 0.2% growth. Moreover, the reading for the previous reporting period was revised from no growth to a 0.2% increase.
Meanwhile, Bank of Japan Governor Haruhiko Kuroda predicted that inflation will not reach the 2% target until 2018, saying:

NZ Dollar Lower vs. US Dollar, Bounce vs. Other Rivals

 

The New Zealand dollar traded lower versus its U peer

 but managed to rebound against such major rivals as the euro and the Japanese yen.

The US dollar
continued to receive support from optimism caused by the victory of Donald Trump in the US presidential elections. Meanwhile, the accommodative monetary policy of the Reserve Bank of New Zealand made the kiwi rather vulnerable. Yet the New Zealand currency managed to rise above the opening level against some of its rivals despite negative fundamentals, including weaker-than-expected industrial production in China.

US Dollar Continues to Rise as December’s Rate Hike Appears More Likely

 

The US dollar continued its advance against its main

 rival currencies on expectations of increased fiscal spending and lower taxes under Donald Trump’s administration. The greenback was further supported by the rising likelihood of an interest rates hike by the Federal Reserve is December.

British Pound Struggles to Find Direction, Drops Against U.S. Dollar

 

The British pound declined on Monday as the currency

 retreated from its recent highs due to the rapid gains that the U.S. dollar achieved. The British pound traded near its last week’s opening level today after losing all of the gains accomplished on Friday, which had brought the currency to its highest level since its sudden crash on October 7.

Traders speculate that Donald Trump’s presidency could produce higher inflation rate in the USA, which would accompany the increase in fiscal spending that the president-elect plans to introduce once he’s in office. The global bond market sharply declined on expectations of higher inflation, pushing US Treasury bond yields to their highest levels in 2016.
The British pound declined against the dollar as the greenback was lifted by the rise in bond yields. The probability of an interest rate hike by the Federal Reserve in December rose to 85.8%, according to the CME Group FedWatch Tool, further supporting the dollar, which touched its highest level since December 2015 earlier today.
However, the pound had a small advance against the euro on Monday as the British currency continues to be supported by the UK High Court’s ruling that the government needs a parliamentary approval before moving ahead with the Brexit. Meanwhile, the shared currency continued struggling to find strength against the British pound and the dollar.
GBP/USD traded at 1.2484 as of 20:09 GMT after opening the day at 1.2564. The pair repeatedly fluctuated up and down today as it traded between 1.2587 and 1.2449. EUR/GBP touched 0.8590 after closing at 0.8613 on Friday. Meanwhile EUR/USD was at 1.0726 after touching 1.0710, the pair’s lowest point since December 2015.
If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.