The general index of the US dollar extends its gains in the middle of trading today, Wednesday, before the Thanksgiving holiday tomorrow, Thursday, as the US dollar is trading at 96.65 levels, with daily gains estimated at 0.20%, as the markets await a heavy day in terms of economic data that will be issued from the US economy.
The second reading of the gross domestic product in the United States of America for the third quarter will be the first data today, as markets expect a bullish reading to 2.2% from 2%. Durable goods orders for the month of October are expected to grow by 0.2% after declining in September by -0.3%, while core orders are expected to stabilize at 0.5%.
The US Federal Reserve’s preferred indicator of PCE inflation will be released today as well to give the market a better view of inflation in the world’s largest economy, where the weakness of the Fed’s target is expected to come at 2% on an annual basis in October and rise by 0.4% on a monthly basis compared to 0.2% in September .
The Consumer Confidence Index from the University of Michigan, in addition to the Personal Income and Personal Spending indices, the New Home Sales Index, and the Weekly Unemployment Benefits will be announced in the American session as well, and it is expected to exceed expectations in most of them.
We will conclude today’s trading session with the minutes of the US Federal Reserve, which was held on the third of last November, to shed light on the details of the process of reducing asset purchases, which was agreed upon on the third of November, by 15 billion dollars per month out of the total amount of 120 billion dollars.
The PCE indicator concerned with measuring inflation and the Fed’s favorite, as we mentioned, in case it exceeds expectations strongly today, is expected to support markets’ expectations that the US Federal Reserve may accelerate the process of decreasing bond purchases, especially after the number of US Fed members supporting the acceleration rose yesterday, Tuesday, with Bostick joining the team and thus will extend The US dollar gained from the rest of the day.
The absence of the American markets tomorrow due to the Thanksgiving holiday in the United States of America and its early closure on Friday will technically make today the last day of trading with natural liquidity and therefore we do not rule out any strong movements.
The Japanese yen and the euro will be among the most affected if the data exceeds expectations and supports the gains of the US dollar, while the British pound and the New Zealand dollar will benefit from the positive data released.
05/11/2024
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