Forex Major Currencies Outlook (Nov 25, 2016)

Banks and markets reopen today but liquidity is still expected to be thin over the long weekend so the Greenback might simply react to market sentiment or stay in consolidation. 

EUR

The euro also moved mostly sideways even though data came in slightly weaker than expected. The German Ifo business climate index was unchanged at 110.4 instead of improving to the estimated 110.6 reading. Italian retail sales data is due today and a flat reading is eyed. 

GBP

The pound tried to advance against some of its peers and was able to rake in a few gains. There were no major reports out of the UK then while today has the second GDP estimate and the preliminary business investment figure. No changes are expected for the Q3 GDP at 0.5% while business investment likely fell 0.2% for the quarter. 

CHF 

The franc took a break from its recent selloff to cruise sideways while most traders were out on vacation. There were no major reports out from the Swiss economy yesterday and none are due today. 

JPY

The yen continued to bleed against its forex counterparts as risk appetite remained in play even though most traders were enjoying the long weekend. Data from Japan came in line with expectations, as both Tokyo and national core CPI showed 0.4% declines. The BOJ core CPI is due next. 

Commodity Currencies (AUD, NZD, CAD)

The comdolls advanced against the yen but consolidated against most of its peers. New Zealand printed a stronger than expected trade deficit of 864 million NZD versus the estimated 950 million NZD while the previous reading was upgraded. There are no reports due from the comdoll economies today, but oil-related headlines could push CAD pairs around. 

By Kate Curtis from Trader's Way