Dollar Likely to Give Back Some Gains


The U.S. dollar index advanced by default as a result of weaker economic reports out of the euro zone.

However, lower prices are likely later today for the greenback from the current higher levels.

Euro zone inflation declined more than expected for a third straight month in November, which put pressure on the euro currency. The bloc’s consumer price index increased 2.4% on the year, slowing from 2.9% in the previous month, according to preliminary data published by the European Union’s statistics agency Eurostat. Economists expected prices to advance on the year by 2.8%.

Germany’s seasonally adjusted jobless rate increased to 5.9% in November 2023, which is up from October’s 5.8% and slightly above market expectations of 5.8%. This was the highest rate since May 2021.

Japan’s factory output increased for a second straight month in October. Industrial production increased 1.0% in October from the previous month. The median forecast was 0.8% growth.



Stock index futures are higher.

Jobless claims in the week ended November 25 were 218,000 when 219,000 were expected.

Personal income in October increased 0.2% as anticipated, and personal consumption expenditures were up 0.2% as forecast.

The 8:45 central time November Chicago PMI is predicted to be 45.1, and the 9:00 October pending sales home index is forecast to show a 2.0% decline.

The technical aspects have become much more supportive to stock index futures.


Yesterday’s release of the Fed’s Beige Book showed U.S. economic activity slowed from early October through the middle of November, while businesses reported inflation moderated, and it was easier to hire workers.

John Williams of the Federal Reserve will speak at 8:15.

There is a growing consensus among analysts that the Federal Reserve has concluded its rate hiking cycle.

Financial futures markets are predicting there is a 96% probability that the Federal Open Market Committee will keep its fed funds rate unchanged at its December 13 policy meeting.


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