Dollar Poised to Have Worst Week in Five Months
The dollar edged lower on Friday, poised for its worst week since the end of June. Trading was subdued after US markets were closed Thursday for the Thanksgiving holiday. Liquidity was also disrupted by an hours-long trading halt at the Chicago Mercantile Exchange, which rippled across markets. The Canadian currency rose after domestic GDP beat estimates, outperforming all peers in the Group of 10 against the greenback.
The Bloomberg Dollar Spot Index traded slightly lower, extending its drop into a fourth session
The index was down 0.7% this week, on path for the worst week since June 27
“Markets are now expecting a Fed cut in December and it would take positive data surprises to prop up the USD,” FX strategists at Credit Agricole wrote in a note
Trading of futures and options was halted due to a fault at a CME data center, spilling over into multiple markets and affecting contracts covering trillions of dollars.
USD/CAD fell 0.4% to 1.3973; it touched lowest since Oct. 30 and then curbed its loss
The Canadian economy rebounded sharply from the initial damage of the trade war. Canada’s GDP rose at a 2.6% annualized pace in the third quarter, Statistics Canada reported Friday from Ottawa, while economists forecast a 0.5% quarterly increase
“The initial move lower was quite aggressive, implying that markets leaned more on the positive surprise headline,” said Bipan Rai, a managing director at BMO. “Once you look at the details of the report though, its clear that the initial reaction was a bit overdone”
USD/JPY fell 0.1% to 156.12
Data showed Tokyo’s inflation held steady and industrial output unexpectedly rose, keeping the Bank of Japan on track to consider an interest-rate hike in December or January
EUR/USD rose 0.1% to 1.1603; European CPI readings show a mixed picture of inflation, while ECB inflation expectations show an uptick over the next year
GBP/USD climbed 0.1% to 1.3246
Source : Bloomberg.com
