dollar

Nov. 22, 2017 (Tempus Inc.) –  The U.S. Dollar remains quiet ahead of the Thanksgiving holiday, even after the release of Durable Goods Orders.

USD

The figures surprised as the indicator was expected to show a 0.3% expansion, instead contracting by (-1.2%). When transportation costs are excluded, a 0.4% increase was registered, but this still fell below expectations of 0.5% for October.

The saving grace may be the revision of September’s numbers where the expansion was thought of being at 0.7%, but came in upgraded at 1.1% Overall; this piece of data has lacked consistency over the year and may not be as influential as we close the year.

The FOMC Minutes are scheduled for 2PM, but we see little if any reaction as the Fed’s move towards hiking is very much determined and priced-in. Tempus will be closed Thursday in observance of Thanksgiving and will be open again on Friday.

EUR

The Euro continues to swim in relatively calm waters after Monday’s half-percent decline based on worries in German political stability. At the moment, Chancellor Angela Merkel would not refuse to have another snap election in order to gain seats and have an easier time forming an alliance.

However, headlines overnight saw the prospect of another vote as worrisome, but welcomed the idea of forming a “grand coalition” with the Social Democrats, a party usually aligned with Merkel’s goals, but that suffered bigly on election day and blamed her platform for the failure. We shall see if downside risks manifest themselves into further depreciation, but for now Euro is not paying any heavy tolls.

GBP

The Pound’s recent gains have been subdued slightly due to concerns over Brexit and its symptoms affecting the economic outlook. Later today, the Chancellor of the Exchequer, Philip Hammond, will present a new budget and his remarks may provide guidance the state of affairs. PM Theresa May is just hoping that the EU embraces new talks and the idea of being paid an agreed final bill amount.

Orders in the UK are up to their best level in 30 years per a survey by the Confederation of British Industry. This mix of good economic data and bad news on the Brexit front are likely to dominate the Sterling environment for what’s left of the year and beyond.

 


USA 

Gold and silver are taking advantage of the U.S. dollar’s decline to a two-week low against the euro and other major currencies. Gold futures are back on the rise and silver is reaching its highest level in six weeks.

In New York trading today, gold prices were poised for a weekly gain with futures for December delivery climbing 0.3 percent to $1,733.50 per ounce. Also advancing 0.3 percent, silver futures for March delivery reached $33.53 per ounce.

The weakness of the U.S. dollar is spurring demand for gold and silver as an alternative to the greenback. According to data compiled by Bloomberg, holdings of exchange-traded products that are backed by gold rose to a new record level of 2,605.3 metric tons on November 21. A report published by the U.S. Mint office showed demand for gold coins picking up with 67,000 ounces of American Eagle coins sold so far this month, compared with 59,000 ounces throughout October.

Better than expected reading in the German business confidence index, which rose for the first time in 8 months, and optimism that the Eurogroup finance ministers will agree on the next tranche of aid to Greece at their meeting on Monday, November 26, are giving additional impetus to the euro’s recent rally against the U.S. dollar. The single currency once again has its eye on the $1.30 mark with an intraday high at $1.2989.