Here's what you need to know on Friday, November 22nd.
After a quiet European session, United States dollar (USD) It regained momentum late Thursday and continued to rise early Friday, reaching its highest level since October 2023 above 107.00. S&P Global releases preliminary Purchasing Managers' Index (PMI) for Germany, the Eurozone, and the United Kingdom for November.
USD price this week
The table below shows the percentage change of the US dollar (USD) against major currencies this week. The US dollar was the strongest against the euro.
| USD | EUR | GBP | JPY | CAD | australian dollar | new zealand dollar | swiss franc | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.68% | 0.39% | 0.46% | -0.76% | -0.51% | 0.55% | -0.10% | |
| EUR | -0.68% | -0.12% | -0.11% | -1.32% | -1.03% | -0.02% | -0.67% | |
| GBP | -0.39% | 0.12% | 0.04% | -1.20% | -0.92% | 0.11% | -0.55% | |
| JPY | -0.46% | 0.11% | -0.04% | -1.23% | -0.90% | 0.14% | -0.50% | |
| CAD | 0.76% | 1.32% | 1.20% | 1.23% | 0.28% | 1.32% | 0.66% | |
| australian dollar | 0.51% | 1.03% | 0.92% | 0.90% | -0.28% | 1.03% | 0.37% | |
| new zealand dollar | -0.55% | 0.02% | -0.11% | -0.14% | -1.32% | -1.03% | -0.65% | |
| swiss franc | 0.10% | 0.67% | 0.55% | 0.50% | -0.66% | -0.37% | 0.65% |
The heat map shows the percentage change between major currencies. The base currency is selected from the left column and the quote currency is selected from the top row. For example, if you select USD from the left column and move along the horizontal line to Japanese Yen, the percentage change displayed in the box represents USD (base)/JPY (estimate).
U.S. data on Thursday showed weekly new jobless claims fell from 219,000 to 213,000. Meanwhile, existing home sales in October increased by 3.4% from the previous month. In addition to these positive data releases, hawkish comments from Federal Reserve officials also provided further support for the dollar during US trading hours. On Friday morning in Europe, U.S. stock index futures were trading slightly lower, while the benchmark 10-year U.S. Treasury yield was stable at around 4.4%.
At Friday's Asian session, Japan's statistics bureau announced that the national consumer price index (CPI) rose by an annualized 2.3% in October, down from 2.5% in September. Meanwhile, Reuters reported that Japan is preparing a new economic stimulus package worth 13.9 trillion yen ($89.7 billion) aimed at easing the financial burden on households from rising prices. After falling more than 0.5% on Thursday. USD/JPY It rose steadily early on Friday and was last seen trading around 155.00.
euro/usd It turned south in US trading on Thursday, dropping below 1.0500. The pair struggled to rebound early Friday and is trading around 1.0470.
GBP/USD It fell 0.5% on Thursday, extending its decline during Friday's Asian trading session. At the time of writing, the pair was trading at its lowest level since May, below 1.2600.
According to Australian data, the Judo Bank Composite PMI stood at 49.4 in November, down from 50.2 in October. Australian dollar/US dollar The data has put some bearish pressure on the stock, which was last trading just below 0.6500, down 0.3% on the day.
gold Extending the week's gains, the stock closed in positive territory for the fourth straight day on Thursday. XAU/USD maintains the bullish momentum of Friday’s European morning and continues to rise towards $2,700.
US Dollar Frequently Asked Questions
The United States Dollar (USD) is the official currency of the United States and the “de facto” currency of many other countries, circulating alongside local paper currency. It is the world's most frequently traded currency, accounting for more than 88% of the world's foreign currency trading volume, with an average daily trading value of $6.6 trillion. data After World War II, the US dollar replaced the British pound as the world's reserve currency. For most of its history, the U.S. dollar was backed by gold until the Bretton Woods agreement in 1971 abolished the gold standard.
The most important single factor influencing the value of the US dollar is the monetary policy formed by the Federal Reserve System (Fed). The Fed has two responsibilities: achieving price stability (controlling inflation) and promoting full employment. The main tool to achieve these two goals is to adjust interest rates. If prices rise too fast and inflation exceeds the Fed's 2% target, the Fed will raise interest rates to support the value of the U.S. dollar. If inflation falls below 2% or unemployment is too high, the Fed could cut interest rates, which would weigh on the dollar.
In extreme circumstances, the Federal Reserve could also print more dollars and implement quantitative easing (QE). QE is a process by which the Fed significantly increases the flow of credit in a stalled financial system. This is a non-standard policy tool used when credit is exhausted because banks do not lend to each other (for fear of default by the other party). It is a last resort when simply lowering your interest rate does not seem to produce the desired results. This was the Fed's weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis of 2008. This involves the Fed printing more dollars and using it to buy U.S. Treasuries, primarily from financial institutions. QE usually leads to a weaker US dollar.
Quantitative tightening (QT) is the opposite process in which the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal of maturing bonds in new purchases. Usually positive for the US dollar.
