Forex – Weekly Outlook: November 19 – 23

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Investing.com – This week trade tensions and Brexit developments will remain in focus as U.S. markets wind down for the Thanksgiving holiday.

Currency traders will be watching for signs that the U.S. and China are seeking to de-escalate their trade dispute after President Donald Trump said he may not impose more tariffs on Chinese imports if China comes up with terms that he and Beijing could agree on.

Market watchers will also be watching for signs of strength in the U.S. economy as they await spending figures over the Black Friday shopping weekend.

In the UK, Prime Minister Theresa May will be fighting to keep her draft Brexit deal on track amid a leadership challenge from within her own party.

The dollar fell against a basket of the other major currencies on Friday after dovish comments by Federal Reserve Vice Chair Richard Clarida, who said he saw some evidence that global growth is slowing.

Clarida also noted that U.S. interest rates are nearing Fed estimates of a neutral rate, and being at neutral “makes sense.”

The comments were seen as an indication that the Fed may pause its interest rates hikes sooner than had been anticipated.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.5% to 96.31 in late trade, to end the week down 0.43%.

Read more at : https://www.investing.com/news/forex-news/forex–weekly-outlook-november-19–23-1692498

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