European FX Outlook: Eurozone services and manufacturing activity is set to shine

What you need to know before markets open: 

• The US Dollar depreciated broadly on Wednesday afternoon with the US data disappointing and the markets characterized by low liquidity ahead of Thanksgiving.
• The French, German and the Eurozone manufacturing and services activity data headline the Thanksgiving day. 

Thursday’s market moving events

• German Q3 GDP is set to rise 0.8% q/q in a detailed reading, confirming preliminary estimates.
• French manufacturing PMI for November is expected to decelerate to 55.9 in November while services PMI is expected to decelerate to 57.1 during the same month. 
• German manufacturing PMI for November is expected to decelerate to 60.4 in November while services PMI is expected to rise to 55.2 during the same month. 
• The Eurozone manufacturing PMI for November is expected to decelerate to 58.3 in November while services PMI is expected to rise to 55.3 during the same month. 
• The UK Q3 GDP is expected to confirm preliminary rise of 0.4% q/q.
• The US stock market is closed for Thanksgiving.
• Canada's retail sales are expected to rise 0.9% m/m in October.
• The Swiss National Bank governor Thomas Jordan is set to deliver a speech titled “High current account surplus of Switzerland: consequences for the monetary policy of the SNB?” at the University of Basel at 16:30 GMT. 

Major forex market movers

• The USD/JPY was a top loser on Wednesday with the US Dollar losing more than 1% ahead of Thanksgiving.
• The EUR/USD gained 0.7% to trade around $1.1830 as US Dollar was losing steam with stock markets corrected from previous day´s record highs.

Wednesday’s macro summary

• The UK Chancellor of the Exchequer Philip Hammond lowered the economic growth forecast for 2017 to 1.4%t compared with the 1.6% predicted in March as a result of revised productivity data and headwinds caused by Brexit. A significant downgrade to the forecasts underpinning the budget, with a cumulative 2.1% reduction in the level of GDP by 2021. That brings the budget forecast broadly in line with the Bank of England's forecast.
• The US durable goods orders fell 1.2% m/m in October but rose 0.4% m/m after transport equipment was excluded.
• Weekly jobless claims in the US rose 239K, slightly less than 241K expected.
• The University of Michigan consumer confidence index fell to 98.5 in November.
• The University of Michigan inflation expectations for 2018 decelerated to 2.5% y/y in November. 
• The consumer confidence indicator for the Eurozone rose to 0 in November, the highest reading since 1985 and the 8th highest reading on record. 
• European summit on Eurozone future in December still on the agenda despite no German government
• The FOMC minutes revealed that policymakers see rate increase likely warranted soon and debated broadly the inflation with some participants saying rate hike should be deferred until data showed inflation was clearly on a path to Fed's 2% inflation target.