Last week, the USD trended lower after Fed policy minutes release. While the Fed is on a rate hiking path, some policy makers including Yellen are concerned over persistently low inflation. USD fell to September 2017 levels to a two-month low against major currencies on worries of future Fed rate hikes.USD Index (DXY), which tracks the movement of the USD against six major currencies, fell by 0.94% on a week on week basis and is at a level of 92.78.
U.S. Commerce Department reported that the producer price index increased 0.4% last month and by 2.8% from a year earlier against the expectation for an increase of 0.1% last month and a rise of 2.4% from a year ago.
The National Association of Realtors (NAR) reported that U.S. existing home sales rose more than expectated in October. Data showed that home resales increased by 2.0% in October to 5.48 million units against 5.39 million units in September 2017.
US Commerce Department indicated that orders for durable goods fell 1.2% in October as transportation equipment sharply fell while it rose 2.2% in September 2017.
U.S. Department of Labour on Thursday reported that the number of individuals filing for initial jobless benefits in the week ended 18th November fell by 13,000 to 239,000 from previous week’s total of 249,000 against the expectations of an increase by 10,000.
U.S. consumer sentiment was revised upwards for November. University of Michigan’s Consumer Survey Centre pointed that consumer sentiment increased to 98.5, from previous reading of 97.8.
Euro appreciated by 1.21% against the USD last week and is likely to touch Eur 1.20 levels against in the coming weeks as solid euro zone growth data is showing that the region’s economic recovery is on track. Data showed that the eurozone economy grew by an annualized 2.5% in the third quarter, outstripping growth in the U.S. economy, largely on the back of Germany economic growth, which grew by 0.8% in third quarter of the year against the expectation of a 0.6% rise. Eurozone consumer prices rose at an annual rate of 1.4% in October, down from 1.5% in September and still below the ECB’s target of close to 2%.
Asian currencies were largely higher last week against the USD. Australian Dollar depreciated by 0.48%, New Zealand Dollar appreciated by 0.98%, Japanese Yen appreciated by 0.51% against the USD and depreciated by 0.68% against the Euro. South Korean Won appreciated by 1.14%, Philippines Peso appreciated by 0.55%, Indonesian Rupiah appreciated by 0.20%, Indian Rupee appreciated by 0.48% against the USD and appreciated by 0.03% against the Euro, Chinese Yuan appreciated by 0.38%, Malaysian Ringgit appreciated by 1.09% and Thai Baht appreciated by 0.50%.