US Dollar Retraces Ahead of Import, Export Data
The US dollar was mixed against its major trading partners — up versus the pound and Canadian dollar, down versus the euro and yen — early Thursday.
However the USD index, which tracks the dollar versus a basket of six currencies, remains stuck below thick daily cloud resistance that currently spans the 104.535-106.155 region.
Data on import and export prices for October, weekly initial jobless claims and the Philadelphia Fed’s manufacturing conditions index for November are all set to be released.
A quick summary of foreign exchange activity heading into Thursday showed that USDEUR rose to 1.0852 from 1.0847 at the Wednesday US close but was below a 1.0867 level.
There are no EU data on Thursday’s schedule, and the next European Central Bank policy meeting is scheduled for Dec. 14.
Forex data showed that GBPUSD fell to 1.2397 from 1.2416 at the Wednesday US close and 1.2471 at the same time Wednesday morning.
There are no UK data on Thursday’s schedule, though Bank of England Deputy Governor David Ramsden is set to speak at 10:45 am ET. The next BoE policy meeting is scheduled for Dec. 14.
USDJPY slipped to 151.2751 from 151.3932 at the Wednesday US close but was above a 150.3117 level at the same time Wednesday morning.
The Japanese tertiary index, a measure of services purchases, declined more than expected in September, data released overnight showed. The next Bank of Japan policy meeting is scheduled for Dec. 18-19.
USDCAD rose to 1.3731 from 1.3683 at the Wednesday US close and 1.3685 at the same time Wednesday morning. Canadian housing starts data for October are expected to be released at 8:15 am ET. The next Bank of Canada policy meeting is set for Dec. 6.
USD/SGD edges higher in the Asian afternoon session. In the interim, USD still has a significant yield advantage, foreign-exchange strategist Christopher Wong at OCBC Global Markets Research says in a report.
Hence, USD may find intermittent support on dips, particularly if risks of a slowdown in global and China growth momentum persist, Wong says.
