Forex News for North American Trade November 24, 2021:
- S&P 500 up 10 points to 4,701
- US 10-year rates fall 2.7 basis points to 1.637%
- Gold down $ 1 to $ 1,788
- WTI crude oil down 23 cents to $ 78.27
- CAD advances, NZD delays
There was a ton of economic data as the US rushed to the releases ahead of a four-day weekend and there were a few major highlights. The consumer spending side of the PCE report was strong, and jobless claims hit their lowest level in 52 years. Many people blamed seasonal adjustments for these, but few would object to the idea of a strong labor market. Despite everything, what I will remember today is Daly’s pivot.
Just over a week ago she said, “I have a strong tendency to stick with the current rate of reduction” and now she is essentially arguing for a faster reduction. This is one of the most out of left field moves in some time, especially since there was no significant data in between.
The Fed’s blackout begins next Saturday and that leaves senior officials little time to signal a similar change, but I’ll be on their toes now – as well as the dollar’s strength it should bring.
Some of that crept in today, but I’d say it’s just a taste. Both the Euro and the British Pound hit new lows as the USD / JPY consolidated above the key 115.00 level.
The kiwi continued to struggle after the RBNZ decision and the Australian dollar was not far behind. The only currency to keep pace with the US dollar was the loonie, despite a slight drop in oil prices.
Happy Thanksgiving to all of our American readers.