FX Today: It’s PMI-day!

The US Dollar (USD) kept its upside impulse well in place for yet another day on Thursday, this time climbing to the area of six-month highs backed by declining bets for another interest rate cut by the Federal Reserve (Fed) at its December meeting. Collaborating with the Greenback’s strengthening, US Nonfarm Payrolls (NFP) surprised to the upside in September, showing that the economy added 119K jobs.

Here’s what to watch on Friday, November 21:

The US Dollar Index (DXY) advanced past the 100.00 barrier to hit new multi-month highs despite declining US Treasury yields across the curve, while investors kept assessing the hawkish FOMC Minutes and the firmer-than-expected NFP data. The flash S&P Global Manufacturing and Services PMIs take centre stage at the end of the week alongside the final U-Mich Consumer Sentiment index and speeches by the Fed’s Williams, Barr, Jefferson and Logan.

EUR/USD weakened further on Thursday, exposing a potential test of the key support at 1.1500. The advanced HCOB Manufacturing and Services PMIs in Germany and the euro area will wrap up the domestic calendar ahead of the ECB’s Negotiated Wage Growth figures and speeches by the ECB’s Lagarde, De Guindos and Machado.

GBP/USD was the outperformer among its risk-linked peers, ending the day around

1.3070 following an earlier move past 1.3100 the figure. An interesting UK docket will feature the GfK Consumer Confidence gauge, seconded by Retail Sales, Public Sector Net Borrowing figures and the flash S&P Global Manufacturing and Services PMIs.

The march north in USD/JPY remained unabated on Thursday, with spot approaching the 158.00 mark and trading at shouting distance of the yearly peaks just shy of the 159.00 barrier. Japan’s Inflation Rate takes centre stage followed by the Balance of Trade results and the preliminary S&P Global Manufacturing and Services PMIs.

AUD/USD broke below its critical 200-day SMA, slipping back toward the 0.6430 zone and exposing further weakness in the next few days. The advanced S&P Global Manufacturing and Services PMIs will be next on tap Down Under.

WTI prices added to Wednesday’s deep retracement, breaching below the $59.00 mark per barrel despite shrinking US stockpiles and sanctions on Russian oil.

Gold could not sustain its recent gains, reversing two daily advances in a row and coming close to the key $4,000 mark per troy ounce as traders continued to scale back bets of a Fed rate cut next month. Silver prices faded two daily gains in a row and receded to the vicinity of the $50.00 mark per ounce on Thursday.