The US Dollar closed lower last Friday after news that the FBI was to open an investigation and probe into Hilary Clinton’s emails just a week before elections. The US Dollar index, that measures the USD against a basket of foreign currencies, hit weekly lows of 98.24 last Friday but is back to 98.43 at the time of writing.
The FBI announcement has raised a lot of questions on whether this was a political move. On Friday as well Annualized GDP for Q3 was better than expected at 2.9%. Expectations for a December rate hike so far remain intact.
We have more high impact data expected today, we now await Q3 GDP figures from the Euro Zone and we are also expecting the EZ CPI estimate, inflation has a high bearing on monetary policy decisions but we are not expecting major changes on this front.
Euro lost some support this morning after hitting weekly highs against the weaker USD last Friday. EURUSD managed highs of 1.0991 but seems that euro is giving back some of its gains as the EURUSD back tracks to 1.0968 at the time of writing.
Later this week, the following high impact data is expected; On Tuesday BoJ policy statement and rate decision, Chinese Manufacturing PMIs, RBA rate decision, and Candian GDP. On Wednesday German Unemployment, and US Fed rate decision and comunique. Thursday we have BoE rate decision and finally on Friday US nonfarm payrolls and Canadian unemployment.
