The dollar trade calm on Wednesday ahead of the U.S

Good Morning,

- The dollar trade calm on Wednesday ahead of the U.S. Thanksgiving holiday tomorrow, while the Australian dollar wallowed near four-year lows. The dollar index stays flat on the day at 87.923, below its four-year peak of 88.440 set on Monday.

- The German index of import prices decreased by 1.2% in October 2014 compared with the corresponding month of the preceding year. In September 2014 and in August 2014 the annual rates of change were –1.6% and –1.9%, respectively. From September 2014 to October 2014 the index fell by 0.3%.

- The consumer mood in Switzerland fell from -1 to -11 index points, dropping below its long-term average of -9 points for the first time since February 2013. The slowdown in growth during the second quarter of 2014 (growth rate of only 0.2 percent compared to the previous quarter) seems to have heightened concerns about economic performance and job security. This uncertainty has led consumers to put off making major purchases and maybe start to put pressures on Swiss franc.

- Credit Suisse on EUR/USD: EUR/USD came within a whisker of the 1.2358 recent low on Monday, which attracted some near-term buying, notes Credit Suisse. "However, we ideally look for price and 21-day average resistance at 1.2502/08 to cap to keep the immediate trend lower," CS argues. "Removal of 1.2358 would target 1.2295/89 next, ahead of the bottom end of the medium-term range at 1.2224, where we would look for fresh buying to emerge. Should weakness directly extend, this should see a challenge on the 1.2042 pivotal low of 2012," CS projects. Near-term resistance, according to CS moves back towards 1.2502/08 and beyond here can see a deeper recovery towards the 1.2600 pivot high. In line with this view, CS runs a limit order to sell EUR/USD at 1.2500 targeting 1.2225.

- European Union authorities are set to unveil a long-awaited investment plan this week with the ambition of channeling 315 billion euros into public infrastructure projects like transportation, communications and energy over the next three years. The plan, worth the equivalent of $460 billion if it reaches its target, is meant to spur growth among the 28 nations in the bloc, in response to concerns that Europe is tumbling into a lost decade of low growth and high unemployment.

- The economy in the U.S. expanded more than previously forecast in the third quarter, reflecting bigger gains in consumer spending and business investment and capping the strongest six months of growth in a decade. Gross domestic product, the value of all goods and services produced, rose at a 3.9 percent annualized rate, up from an initial estimate of 3.5 percent, data showed yesterday.

- Bank of Japan chief Haruhiko Kuroda urged business leaders to use profits more productively, saying hoarding cash will become costly as the central bank stamps out deflation. Companies could boost investment in facilities and jobs, taking advantage of a weaker yen .

- BOJ’s Shirai thinks it will take more than two years to reach 2% inflation target. Recovery in consumption was later than expected, it’s possible that real GDP will contract in FY2014.

- Low interest rates were working in Australia, and any further cuts would also be effective, says Reserve Bank of Australia deputy governor Philip Lowe. Dr Lowe told that unlike in other countries where poor credit demand had rendered monetary stimulus largely unproductive, Australian investors had responded to the RBA's easing. The cash rate, which has been on hold at 2.5 per cent since August last year, is expected to remain there at least until the middle of next year, according to consensus forecasts. The Australian dollar in the last 24 hours moved down to a new multi-year low near 0.85.

- Watch today: US durables goods, US jobless, spending and income.

Have a nice Day !