Forex Major Currencies Outlook (Nov 22, 2016)

There were no reports out of the US economy yesterday and only the Richmond manufacturing index and existing home sales are lined up for today.  

EUR

The euro was still in a weak spot against its peers even after ECB Governor Draghi tried to restore confidence in the region. Euro zone consumer confidence data is due today and no change in the -8 index is eyed.  

GBP

The pound made a strong bounce during the latter part of the UK trading session when Prime Minister May reiterated that they plan on getting the Brexit negotiations started by March 2017. She also sought to boost business confidence in assuring that new trade deals will be better for the UK economy and set the tone for an ambitious Autumn Forecast Statement due later on this week.

CHF

The franc was mostly weaker across the board when risk appetite picked up. There were no reports out of the Swiss economy yesterday while today has the trade balance on tap. A smaller surplus is eyed compared to the previous 4.37B CHF so speculations of SNB intervention could return if export activity is significantly weak. 

JPY

The yen continued to give up ground against its peers on risk appetite and inflows to the US dollar. There were no reports out of Japan yesterday and none are due today so risk sentiment could be the main driver for yen pairs, although profit-taking is also possible ahead of tomorrow's holiday. 

Commodity Currencies (AUD, NZD, CAD)

The Loonie was the leader of the pack as stronger crude oil rallies ensued when sources from the OPEC technical talks confirmed that "some progress" is being made. Even though there are some concerns about Iran, several nations have expressed willingness to be flexible with Iran's production levels. Canadian retail sales data are due today and strong gains are eyed, likely giving another boost for the currency. 

By Kate Curtis from Trader's Way