Forex Signals Brief November 27: US Q2 GDP and PCE Price Index to Highlight the Week
Last week the attention was on the manufacturing and services PMI reports from Europe and the US, as well as on the FOMC minutes from their last meeting. The minutes didn’t offer much, similar to the meeting accounts by the European Central Banks, with both leaving the option of more hikes open, but markets know that it will likely not happen, since inflation is heading toward normal levels.
As a result, the USD remained soft throughout the week and closed at the lowest levels for the month, which looks worse after Treasury yields turned bullish in the second half of the week. However, there were some positive signals from the services reports in the UK, Eurozone, and the US, showing that this sector is recovering, helping keep risk sentiment positive, with stock markets also remaining bullish for most of the week.
The ceasefire in Gaza also helped improve the sentiment, as it brought some relief to the devastation and opens up options for peace talks. Crude Oil remained bearish this week, with the OPEC meeting being postponed since most countries don’t want new production limits. But, that didn’t stop the CAD from making decent gains, as commodity dollars remained in demand.
This week starts slow, with US trades returning from the bank weekend holiday, which should increase the liquidity. Today we have the ECB President Lagarde testify before the Committee on Economic and Monetary Affairs of the European Parliament, in Brussels, although it’s unlikely to hear something we haven’t heard before, so it won’t have much impact on the Euro. Later we have the US New Home Sales which are expected to show another slowdown in october.
Monday:
- ECB President Lagarde Speaks.
- US New Home Sales.
Tuesday:
- Eurozone M3 Money Supply.
- US Richmond Fed Manufacturing Index.
Wednesday:
- Reserve Bank of New Zealand (RBNZ) Policy Announcement.
- German Preliminary Consumer Price Index (CPI) for November.
- UK Mortgage Approvals and Lending.
- Eurozone Economic Sentiment Index.
- US Gross Domestic Product (GDP) 2nd Estimate for Q3.
Thursday:
- Chinese National Bureau of Statistics (NBS) Purchasing Managers’ Index (PMI) for November.
- German Retail Sales and Import Prices.
- Swiss KOF Economic Barometer.
- German Unemployment Change and Rate.
- Eurozone Harmonized Index of Consumer Prices (HICP) Flash Estimate for November.
- US Personal Income and Personal Consumption Expenditures (PCE) Price Index for October, Initial Jobless Claims (20 Nov week ending), and Canadian Gross Domestic Product (GDP) for Q3.
Friday:
- Swiss Gross Domestic Product (GDP) for Q3.
- Eurozone, UK, and US Final Manufacturing Purchasing Managers’ Index (PMI) for November.
- Canadian Employment Report for November.
- US Institute for Supply Management (ISM) Manufacturing PMI for November.
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals