We open the week of November 18th, with what has become a familiar trend; the dollar continues to fall. The greenback finished off trading on Friday down against most major currencies as credit and housing worries continue to haunt the US economy. Figures from the Department of Treasury regarding International Capital, Balance of Payments, and Industrial numbers hindered any hopes of the greenback gaining on its progress from early last week. Instead, investors start the week offering the greenback in bulk. Another hit to the dollar came this weekend as the Gulf Cooperation Council, made up of the lion’s share of the Gulf States, discussed the possibility of revaluating their currencies away from the greenback. This has become a developing trend as China leaked several hints that they were doing the same, not too long ago.
The greenback this week will have to rely more heavily than usual on outside events, as the shortened Holiday week holds little relevant news in the US economic schedule. Tuesday will see the release of the FOMC meeting minutes which should highlight any suspicion about if and when the Fed will intervene once again to change the economic outlook of the dollar.
US Housing will look to be a notable subject this week with two statements set to be released. Today at 18:00GMT, we will see the release of the National Association of Home Builders Housing Market Index, ahead of Tuesday’s Housing Starts numbers.
Other than that the Greenback is expected to remain under pressure, as more and more nations lose faith in the currency that once represented the symbol of economical robustness, and is now becoming less relevant on a global scale.
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