The U.S. dollar appreciated during the week as the tax reform inched closer to reality. Fundamental data in the U.S. was positive for the currency but hourly wages again disappointed by coming below expectations. Given the importance of inflation indicators inside the Fed stagnant wages could make it hard on the U.S. central bank to keep raising rates in 2018.
After the thin volume by high volatility of last week we could well be looking at more of subdued start to the week as volume returns and US traders returning to their desks try and decipher last week’s moves.
The U.S. dollar depreciated on Friday and touched a five-week low against major currencies. The U.S. Thanksgiving holiday truncated the week with European economic data outperforming U.S. indicators. The United States closed the week with disappointing purchasing manager index (PMI) estimates in the manufacturing and service sectors.