US Greenback Outlook:
- The preliminary November US Markit Manufacturing PMI met expectations, halting what had been a 3 month slide within the index.
- Nevertheless, the opposite two PMI readings launched – Companies and Composite – got here in beneath expectations, signaling that the US economic system’s strong progress trajectory could have slowed in November.
- In response to the IG Client Sentiment Index, the key USD-pairs collectively have a blended bias forward of the Thanksgiving vacation.
US Progress Proxies Largely Weaker
The US Dollar (by way of the DXY Index) is taking a breather this morning after the discharge of the preliminary November US Markit PMI reviews. Whereas the gauge of producing exercise met expectations, reversing a 3 month decline, the 2 extra necessary readings – the companies and composite – each slipped, suggesting that US financial exercise could have slowed in November from its earlier breakneck tempo. Coming into this week, the Atlanta Fed’s GDPNow 4Q’21 progress tracker pegged actual annualized GDP at +8.2%.
Listed below are the info driving the US Greenback this morning:
- USD Markit US Manufacturing PMI (NOV P): 59.1 as anticipated, from 58.4
- USD Markit US Companies PMI (NOV P): 57.zero versus 59.zero anticipated, from 58.7
- USD Markit US Composite PMI (NOV P): 56.5 from 57.6
See the DailyFX Economic Calendar for Tuesday, November 23, 2019.
DXY INDEX TECHNICAL ANALYSIS: 5-MINUTE PRICE CHART (November 23, 2021) (CHART 1)
Following the PMI reviews, the US Greenback’s temporary rally on the session was halted, with pairs like EUR/USD and GBP/USD rallying across the information. The strikes had been minor, nonetheless, with the DXY Index falling again from 96.55 to 96.48 on the time this report was written. The US Greenback stays broadly elevated thus far this week, nonetheless, having clocked in vital beneficial properties to recent yearly highs across the information that Fed Chair Jerome Powell can be nominated for a second time period.
— Written by Christopher Vecchio, CFA, Senior Strategist