Euro opens the week lower against dollar as it's still feeling pressure from ECB president Mario Draghi's dovish comments on Friday. Draghi pledged to boost inflation back to 2% target as quickly as possible and hinted that he's open to additional easing. The common currency will look into German business confidence data today for direction. The Ifo business climate index is expected to drop to 103.0 in November, Current situation gauge is expected to drop to 108.0 while expectation is expected to drop to 95.5. All three gauges would have the seventh straight month of decline. ECB would also release the results of another round of covered-bond purchases.
Looking ahead, the week is shortened by holiday in US on Thursday. But there are still a number important data to watch. That include GDP revision from US, UK and Germany. Also, US will release consumer confidence, durable goods and PCE. CPI from Japan, Germany and Eurozone will also be closely watched. Here are some highlights:
- Tuesday: BoJ minutes; German GDP final; Canada retail sales; US GDP revision, house price indices, consumer confidence
- Wednesday: UK GDP revision; US durable goods orders, jobless claims, personal income and spending, Chicago PMI, new home sales
- Thursday: German CPI, unemployment, Gfk consumer sentiment, Eurozone M3;
- Friday: Japan CPI, industrial production, retail sales; UK Gfk consumer sentiment; Swiss KOF; Eurozone CPI, unemployment; Canada GDP, IPPI and RMPI
Latest CFTC data showed that on November 18, there was deterioration in net positions in Sterling and Euro, comparing to the prior week. While was deeply sold off during the period, positions were relatively unchanged.
- Euro net shorts rose back to -168.7k but was below this year's high of -179k.
- Yen short rose slightly to -92.5k but was held well below recent high of -120.9k.
- GBP net shorts rose sharply from -12.9k to -22.8k.
- Australia dollar net short was relatively unchanged at -37.6k.
- CAD net short was relatively unchanged at 19.5k.