020 7898 0500It was a relatively positive start to the week for the dollar as it benefitted from Germany’s failure to form a coalition and the subsequent weakening of the euro. This could potentially be an ongoing risk for the single currency, especially given that Germany is the largest economy in Europe. This could ultimately help the greenback recover from some of the negative Trump-related headlines we saw over the last week, as well as concerns around tax reform.
We have Thanksgiving on Thursday, so this week’s data schedule is fairly light. November’s purchasing managers’ index releases will be the main focus, and they are forecast to remain at a strong level. As always, investors will be reviewing the Federal Reserve’s meeting minutes to see if there are any further indications confirming an interest rate rise in December.
Having said all of this, light data weeks often see the markets react more sensitively to political events.
