The U.S. Dollar is not likely to increase in value anytime soon. The rest of the world seems to be taking note that the U.S. currency is nowhere near what it once was. In todayâ€™s session, the U.S. Dollar made new lows against the Euro, and lost early morning gains against the Yen. These losses were at least partially due to a lower than expected number reported for building permits. While the Dollar made new lows, the Euro made new highs, with the December Euro futures reaching a high of nearly 1.50, and appears to be continuing on this level. The increased pessimism from the Fed shown in their now quarterly FOMC minutes helped the Euro continue its rise.
Canadaâ€™s Loonie had a shaky day. Inflation news from Canada showed a 2.4 percent increase for the month of October, leading investors to believe a rate cut was imminent. After the release of this news, the Loonie lost early morning gains.
Ahead of this afternoonâ€™s FOMC Minutes, several reports were released. First, ICSC Weekly Chain store sales came out up 0.8 percent for the week ending November 17th. Housing starts were also reported higher than expected at 1.229 million, above the 1.17 million expected and above the previous 1.226 million. Building permits were lower than predicted at 1.178 million, while expected to be 1.2 million. And finally, Johnson Redbook retail sales completed the announcements today, and were bearish with a 0.3 percent increase in the first two weeks of November as opposed to the first two weeks of October.
At 1 PM EST, the FOMC released minutes from its October 31st meeting. According to the minutes, the Fed is concerned with slow economic growth, the continually falling U.S. Dollar, and inflation. These risks led the Fed to make their most recent rate cut, though according to the report it was a close call. The overall sentiment was cautious and concerned when it comes to the U.S. economy.
This report may include information garnered from the following sources: CBOT, Bloomberg, Reuters, Interactive Investor, Cattle Network, Earth Times, AgReport, Aol Money, CNN Money, Market Watch, The Forex Market, Yahoo Finance, FXsol, Financial Times, iWon, Report on Business, Crainâ€™s, Dow Jones Newswire, Nasdaq News, INO News, The Hightower Report.
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