US Greenback Outlook:
- The preliminary November US Markit Manufacturing PMI met expectations, halting what had been a 3 month slide within the index.
- Nonetheless, the opposite two PMI readings launched – Companies and Composite – got here in under expectations, signaling that the US economic system’s strong development trajectory might have slowed in November.
- Based on the IG Shopper Sentiment Index, the foremost USD-pairs collectively have a blended bias forward of the Thanksgiving vacation.
US Progress Proxies Largely Weaker
The US Greenback (by way of the DXY Index) is taking a breather this morning after the discharge of the preliminary November US Markit PMI stories. Whereas the gauge of producing exercise met expectations, reversing a 3 month decline, the 2 extra essential readings – the providers and composite – each slipped, suggesting that US financial exercise might have slowed in November from its earlier breakneck tempo. Coming into this week, the Atlanta Fed’s GDPNow 4Q’21 development tracker pegged actual annualized GDP at +8.2%.
Listed here are the information driving the US Greenback this morning:
- USD Markit US Manufacturing PMI (NOV P): 59.1 as anticipated, from 58.4
- USD Markit US Companies PMI (NOV P): 57.zero versus 59.zero anticipated, from 58.7
- USD Markit US Composite PMI (NOV P): 56.5 from 57.6
See the DailyFX Financial Calendar for Tuesday, November 23, 2019.
DXY INDEX TECHNICAL ANALYSIS: 5-MINUTE PRICE CHART (November 23, 2021) (CHART 1)
Following the PMI stories, the US Greenback’s transient rally on the session was halted, with pairs like EUR/USD and GBP/USD rallying across the information. The strikes have been minor, nevertheless, with the DXY Index falling again from 96.55 to 96.48 on the time this report was written. The US Greenback stays broadly elevated to date this week, nevertheless, having clocked in vital positive aspects to recent yearly highs across the information that Fed Chair Jerome Powell can be nominated for a second time period.
— Written by Christopher Vecchio, CFA, Senior Strategist
DailyFX gives foreign exchange information and technical evaluation on the traits that affect the worldwide forex markets.