Dollar Weakens Amid US Treasury Secretary Pick, But Resilience May Prevail
| Action Insight Daily Report 11-25-24 |
Dollar Weakens Amid US Treasury Secretary Pick, But Resilience May Prevail |
Dollar traded broadly lower in Asian session as markets reacted to President-elect Donald Trump’s appointment of Scott Bessent, a seasoned fund manager, as Treasury Secretary. Bessent’s stance aligns with Trump’s policies on tariffs, though his pragmatic approach has been perceived as a stabilizing factor. He advocates for tariffs to be introduced "gradually" and supports tax reforms, deregulation, and economic growth as pathways to address the US’s significant debt burden. These positions have led some to describe him as a "safe hand" for the role, offering reassurance to bond markets too. However, Bessent’s favor for a strong Dollar and his endorsement of tariffs continue to generate debate. While his appointment may have triggered a temporary pullback in the greenback, analysts caution that his economic philosophies could ultimately reinforce Dollar strength, particularly if supported by broader economic fundamentals. Despite the session’s softness, the Dollar remains the best-performing currency in November, bolstered by resilient U.S. economic data and expectations of a slower Fed easing path. Canadian Dollar ranks as the second strongest, followed by Australian Dollar. Conversely, Euro, British Pound, and Swiss Franc are the weakest performers. Japanese Yen and New Zealand Dollar are holding a middle-ground position..... |
USD/CHF Daily Outlook Daily Pivots: (S1) 0.8877; (P) 0.8918; (R1) 0.8983; More… Intraday bias in USD/CHF is turned neutral first with current dip and some consolidations could be seen first. But outlook will will stay bullish as long as 0.8800 support holds, in case of retreat. Break of 0.8956 will resume the rally from 0.8374, and target 0.9223 key resistance next. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 21:45 | NZD | Retail Sales Q/Q Q3 | -0.10% | -0.50% | -1.20% | | 21:45 | NZD | Retail Sales ex Autos Q/Q Q3 | -0.80% | -0.30% | -1.00% | | 21:45 | NZD | Trade Balance (NZD) Oct | -1544M | -1760M | -2108M | -2154M | | 09:00 | EUR | Germany IFO Business Climate Nov | 86 | 86.5 | | 09:00 | EUR | Germany IFO Current Assessment Nov | 85.5 | 85.7 | | 09:00 | EUR | Germany IFO Expectations Nov | 87.3 | 87.3 |
|
|
|
