Dollar Down in Thanksgiving Day Trade

On Thursday, the Greenback edged lower to a two-month low vs. its major peers, having declined after the minutes of the Federal Reserve's latest meeting showed some policymakers were concerned about continuing low inflation in a blow to rate hawks. Meanwhile, the minutes of the Fed's Oct.31-Nov.1 policy meeting showed that Fed policymakers expect that interest rates will have to be hiked in the "near term", reinforcing market anticipations that the Fed will hike interest rates before the end of the year.

  • The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down by 0.10% at 93.126 pips.

Against the Euro, the Greenback fell as much as 0.19%, to settle at $1.1844.

The Sterling pound declined vs. the U.S. dollar, with GBP/USD easing 0.18% to 1.3299, off the one-and-a-half month high of 1.3337 hit overnight. On the release front, traders are awaiting the UK Gross Domestic Product (GDP), is anticipated to confirm the UK economy grew at 0.4% in the last three months. 

The JPY fell as much as 0.04% vs. the USD with USD/JPY at ¥111.26.

Gold prices declined due to the U.S. Thanksgiving holiday, but losses were limited on speculation the Federal Reserve could not tighten U.S. policy as widely expected. Gold Futures - Dec 17 (GCZ7), fell as much as -0.20% at $1,289.66.

Oil prices edged lower, with U.S. crude falling away from two-year highs reached a day ago, but the shutdown of the Keystone pipeline and a drawdown in fuel stockpiles continued to support markets despite concerns over rising output. On the release front, U.S. crude inventories declined 1.9 million barrels in the week to Nov. 17, to 457.14 million barrels.

Crude Oil WTI Futures - Jan 18 (CLF8) fell as much as 0.24% at $57.88 and Brent Oil Futures - Jan 18 (LCOF8) was down by 0.35% at $57.88.

The most important economic events:

  • GBP Gross Domestic Product (YoY) (3Q P): (GMT 09:30) – Important – Forecast (1.5%) – Previous (1.5%).
  • EUR ECB account of the monetary policy meeting: (GMT 12:30) – Important
  • CHF SNB's Thomas Jordan Speaks in Basel: (GMT 16:30) – Important

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