US Dollar extends correction amid condensed bulk economic data release ahead of Thanksgiving

The US Dollar trades on the back foot at the start of the last normal trading day of the week.

With Thanksgiving and Black Friday ahead, Wednesday will release three days’s worth of economic data. 

The US Dollar Index extends this week’s correction and falls below 106.50 on Wednesday. 

The US Dollar (USD) trades softer against most major peers in the currency markets, with the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, extending this week’s correction and falling below the 106.50 level. The release of the Federal Open Market Committee (FOMC) Minutes on Tuesday did not really move the needle for markets, with confirmation that several Federal Reserve (Fed) members were advocating for either another rate cut in December or a pause in the cutting cycle. The fact that a rate hike was not discussed at all should put markets at ease on the Fed’s rate decision in December. 

The US economic calendar is full on Wednesday, with three days of data compressed into a single trading day ahead of the Thanksgiving holidays. The main pivotal data is the Personal Consumption Expenditures (PCE) Price Index for October, the preferred inflation gauge for the Federal Reserve (Fed), which could shape expectations about the interest rate outlook for the Fed meeting in December. Alongside the PCE release, Durable Goods Orders data for October, revised Q3 Gross Domestic Product (GDP) estimates, and Initial Jobless Claims data for the week ending November 22 will be released.