The US dollar is near the lows of the day right across the board after a series of weak economic data points:
- Oct new home sales 458K vs 471K exp
- Chicago PMI 60.8 vs 63.0 expected
- October personal income 0.2% vs 0.4% exp m/m
- Core durable goods orders -1.3% vs +1.0% exp
- Pending home sales -1.1% vs 0.5% exp m/m
- November University of Michigan consumer sentiment final 88.8 vs 90 exp
That is a large dose of data and it all points to an economy that’s stabilizing after a good expansion in Q3. It raises some concerns about the fourth quarter and 2015, and fears about Fed hikes are beginning to dissipate.
The main spots to watch are USD/JPY and EUR/USD.
USD/JPY touched as low as 117.48 but the level to watch is Friday’s low of 117.36. The euro was able to break 1.3500 after a large option there ran off. There is some trendline resistance at 1.2541.
EURUSD trendline resistance
