Daily Market Update

Dollar Down as Equities Attempt a Thanksgiving Comeback

November 21, 2018

The U.S. dollar gained during much of yesterday’s session as a steep fall in oil prices and a bloodbath in equity markets benefited the safe-haven currency.


However, the greenback is currently giving back those gains as global equities are ticking higher and the U.S. economic docket disappointed.

Durable goods orders were weak in October for a third straight month, another sign that the trade war with China is hurting the real economy. Overall orders fell 4.4% in October, worse than the already bleak forecast of a 2.6% contraction. Orders excluding volatile transportation increased 0.1% and also failed to meet expectations of a 0.4% gain. A separate report showed that weekly jobless claims ticket modestly higher, adding to the disappointing set of data. Later, existing home sales and the University of Michigan consumer sentiment will cross the wire.

All U.S. markets will be closed for Thanksgiving tomorrow.


What to Watch Today…

  • Existing home sales and consumer sentiment

The complete economic calendar can be found here.



The Euro has rebounded from yesterday’s fall and is extending its modest gains in early trading. Some of the Euro’s strength can be attributed to a report by Italian newspaper La Stampa that stated Italian Deputy Premier Matteo Salvini may be open to budget revisions. A spokesperson has denied the assertion, however. The Italian budget saga has dogged the Euro over the past month and a half and a resolution would likely give the common currency some relief.


Volatility remains the name of the game with GBP/USD. The sterling initially popped higher overnight against the U.S. dollar but has since ceded its gains after a report showed Britain’s budget deficit unexpectedly widened in October as spending rose at the fastest pace in eleven years.

Prime Minister Theresa May seems to have avoided a no confidence vote this week and she will be back in Brussels tonight for more Brexit talks. Headline risks persist.


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