Lack of action in markets, quiet Buck
NOVEMBER 14, 2019
The U.S. Dollar is in the mixed territory with some major gains against the Australian Dollar and other commodity-based currencies but is down against the safe-haven Japanese Yen and Swiss Franc.
As it relates to other main counterparts, the buck is relatively quiet as economic data in the U.S. and Europe met their expectations. Producer Price index figures in the U.S. showed that inflation has a higher uptick than expected at 0.3% for the month of October, thus overcoming contraction in September. Clearly, prices remain flat even for companies as they prepare for the winter season.
Jobless Claims came in a bit higher than expected, but it would take a more dramatic figure than 225K to spook markets too much. Everything relies on trade news at the moment; thus any announcements will be a surprise and hopefully spark volatility, create some excitement. The Bloomberg Dollar Spot Index indicates that the greenback is overall at its best value in over a month.
What to Watch Today…
- No major events scheduled for today.
Complete Economic Calendar can be found here.
The Euro is taking a backseat as Gross Domestic Product growth accelerated at the expected 0.2% pace in the third quarter. We shall see if the reaction of any kind moves the needle since at the moment there is nothing but political headlines and already well-known struggles. Stock indexes remain flat and with no other major data points, we shall see if good news out of Spain where an alliance to govern was finally put together will create momentum for the shared currency as we get to the last 6 weeks of 2019.
Sticking to our theme of Antipodean analysis, we shall discuss the Australian Dollar’s rapid loss this morning following the release of awful labor sector numbers. Indeed, “Aussie” is down to its weakest level since mid-October as employment data revealed a loss in full and part-time jobs while the Unemployment Rate rose to 5.3% from 5.2%.
Naturally, these results make a case for the Reserve Bank of Australia to lower rates down the line, which contradicted the decision by neighboring New Zealand. China’s economic data also coming in worse than expected affected Aussie positions.