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Currency Market Analysis

Nov 25, 2019 | Currency Market Analysis

Global Themes

Greenback boosted as US data improves

The greenback was stronger on Friday after US data saw a sharp improvement.

The US manufacturing PMI series, which measures the latest activity in factory output, was reported at 52.2 – above the 51.5 forecast – extending a recent run of improvement in this report.

A better report from non-manufacturing activity and consumer sentiment also boosted the greenback.

Pound weaker

The British pound was sent lower despite an improved showing for the Boris Johnson’s Conservative Party which has taken a 19-point lead with 47% of the vote according to the Opinium/Observer poll.

Instead, a weaker manufacturing number hit the GBP.

The commodity currencies were mostly weaker as markets waited for news on the US-China trade deal.

RBA speech

Europe also saw an improvement in manufacturing numbers on Friday and tonight’s German Ifo business confidence numbers will provide further detail on European growth.

A better number might boost the euro.

Tomorrow, the Reserve Bank of Australia will be in focus with a key speech from governor Philip Lowe entitled "Unconventional Monetary Policy: Some Lessons from Overseas".

The speech will be taken as guidance about the RBA’s thinking about negative interest rates, quantitative easing and other forms of unusual policy.

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