Daily FX Wrap Up

Just when you thought……

The US dollar sank to new lows today against the majors. The move came in a few distinct phases. The first phase sparked interest with personal income and spending, then came PCE-level inflation report, followed by the weekly jobless claims. The market first honed in on personal spending and income numbers. The expected disappointment in spending and strength in earnings reversed their roles in October. The American public spent 0.2 percent more over the month, which is the biggest increase for the past three months. At the same time, income growth slowed for the first time in six months. Concurrently, the PCE figures were objectively weighing in on the Fed’s consistent assurances that inflation risk is ‘primarily to the upside.’ The last phase of the US D7ollar’s decline came in from weekly jobless claims. This report was the biggest surprise for the hour. Initial claims for the week ending November 25 ballooned to 353,000, the most in over a year. What this three-phase attack against the US Dollar caused was a new high, with the EUR/USD hitting 1.3277. Many experts are wondering if this can continue. XPRESSTRADE Analyst David Hilgeman