Optimism weighs on the US Dollar as markets remain quiet

BY FXSTREET

US Dollar dropped modestly on Thursday in a low-volume session, with US markets closed due to Thanksgiving

Friday, November 24

The US Dollar Index (DXY) held below 104.00 and settled around 103.75. Wall Street futures are in positive territory

Today's data is therefore likely to fuel speculation about an ECB rate cut. However, we continue to believe that such a move is unlikely in the near future given the still high underlying inflationary pressures.

Analysts at Commerzbank on EZ PMI:

GBP/USD hit a two-month high and then pulled back modestly to 1.2530. EUR/GBP posted its lowest close in three weeks, slightly below 0.8700.

The Pound outperformed on Thursday, boosted by UK PMI data

USD/JPY rebounded during the American session back to the 149.60 area, confirming the recent recovery. Japan will report the Consumer Price Index for October. Also due is the Jibun PMI.

USD/JPY rebounded

NZD/USD held above 0.6000 but remained limited by 0.6050. New Zealand will report Q3 Retail Sales.

NZD/USD

USD/CAD hit weekly lows near 1.3650 but then rebounded back to the 1.3700 area, holding above the 55-day Simple Moving Average. Canada will report September Retail Sales on Friday.

USD/CAD

AUD/USD rose despite Australian PMI hitting multi-month lows. The pair is hovering around 0.6550 amid subdued price action.

AUD/USD

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