Daily Market Update

U.S. Dollar in Tight Ranges Ahead of Data and Thanksgiving

November 21, 2017

The U.S. Dollar is trading in slightly more favorable ranges this morning after a slow, yet fruitful session yesterday.

USD

Without any data to make any impact, the greenback surged by half a percent against the Euro as markets focused on the surprise political drama in Germany. Chancellor Angela Merkel’s difficulties in forming an alliance are a concern for the sustainability of her reign. For now, the bleeding has stopped.

Tomorrow may turn out to be a more exciting day in light of Durable Goods, Consumer Sentiment, and the FOMC Minutes all scheduled for release. The effects of the numbers may not be as typically impacting considering the fact that it will be on day prior to a major holiday.

 

EUR

The Euro lost ground yesterday based on the unfortunate weekend talks between Chancellor Merkel and Germany’s political parties. Her Christian Democrats seem to have the need to relinquish plenty in terms of policy and vision if they are to form any type of alliance in order to govern.

Issues with immigration certainly highlighted that the success of the Alternative for Germany was indeed the result of fear of outsiders and a sense of insecurity with open-arm policies towards refugees from war-town Syria. The shared currency may also be vulnerable to possible changes in the European Central Bank’s guidance on monetary policy. Details have been yet to be revealed.

 

GBP

The Pound is up on the belief that Prime Minister Theresa May has full backing from her cabinet to present a final bill amount that will satisfy EU officials. The terrible state of negotiations may change if Michel Barnier, chief Brexit negotiators for the EU, supports the move.

Thus far, businesses are exhausted with the back-and-forth and cannot wait too move. Plans are already on the way for major banks to switch over to Frankfurt and leave behind the disillusions of London. No further data from Britain at this time.

 

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