InstaForex

November 24, 2021

US Economic Data, FOMC Meeting Minutes Will Shake Markets

 The US dollar began to show gains as investors awaited the US economic growth data to be published in tonight’s New York session.


US Gross Domestic Product (GDP) data is forecast to increase from earlier estimates, with growth of 2.2% expected in the third quarter of this year.


At the time of writing, the dollar index that measures the strength of the greenback dollar is trading higher at 96.56 against most major currencies.


The 10 -year U.S. treasury yield was also at a higher level, supported by market confidence in stronger American economic growth.



Investors' focus is also on the minutes report of the FOMC policy meeting to be released early Thursday morning which is expected to move the USD more aggressively.


The kiwi dollar was the biggest mover in the quiet Asian session by falling around 0.5% after the New Zealand Central Bank (RBNZ) raised its interest rate by 25 basis points to 0.75%.


While the RBNZ was seen hawkish for the next interest rate hike, the kiwi dollar failed to capitalize on it and fell lower.


Meanwhile, the European currency, the euro and the pound continued to weaken at monthly lows despite stronger -than -expected manufacturing and services data recorded in November.


The currency crisis in Turkey also stole the market's attention, as the lira continued to plunge lower to its weakest level of all time due to interest rate cuts implemented by the central bank despite soaring inflation.