27.11.2019: How USD trading ahead of holiday (USDХ, USD/CAD)


The US currency is set to consolidate gains trading mainly sideways. The economic calendar today contains a series of macroeconomic reports from the US, including the second GDP estimate. However, the market showed a muted response in the run-up to the national holiday in the US. The US dollar index is hovering at around 98.30. Donald Trump cheered up the US dollar and the market again with his remarks that the trade deal would be settled soon. Unwilling to adjust their trading decisions only for the comments on the trade talks, investors are evaluating economic data from the US and China. In terms of economics, the US is taking the lead. The key sector of China’s export-reliant economy is industrial production. The US economic health mainly depends on consumer spending. Fresh data from China confirmed fears about the aftermath from the trade war. Though consumer sentiment in the US worsened in November, the indicator remains at elevated levels. Thus, strong consumer confidence can prop up the domestic economy. Investors are encouraged that the US gross domestic product was upgraded to 2.1% in the third quarter from a 1.9% growth in the first estimate. Besides, the number of initial unemployment claims contracted more than expected by 15,000 last week to the lowest reading since May
11. It proves a healthy labor market despite softer
consumer activity. The Canadian dollar retreated from the weakest
level against the US dollar. The USD/CAD pair went down, bit failed to
reach the target level. The currency pair halted its decline at nearly
1.3267. A further climb is capped because the price
has tested and has been rejected from 1.3295. The pair is heading for support at 1.3234. Amid the lack of economic reports from Canada
today, news on the trade front is setting the tone for the loonie. Traders are anticipating details on the first
phase trade deal. Tomorrow, Canada is due to report on its GDP
and the labor market. Another report of major importance is consumer
sentiment for the eurozone.

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