USD Continues Corrective Movement

The US dollar’s current slight retreat comes as a result of a corrective movement in the bearish direction after several sessions of surging trend.

The US Dollar Index (DXY) heads into the Thanksgiving holiday on track for a third consecutive strong weekly gain.

The US economy’s Q4 is shaping up as booming and key Federal reserve officials are talking about speeding up tapering. Strong NFP data for November seems likely now that the economy is finding its footing again.

The prospect of faster pace of tapering and earlier Fed hikes should provide the DXY with ongoing yield driven upside into the mid-Dec FOMC.

Earlier on Thursday’s session, the dollar continued to gather strength against its major rivals following the high-tier data releases from the US and the US Dollar Index came within a touching distance of 97.00 before going into a consolidation.

Market conditions are likely to remain thin in the second half of the day due to the Thanksgiving holiday in the US.

The FOMC’s November meeting minutes revealed that some policymakers wanted the Fed to be prepared to adjust the pace of reductions in asset purchases to counter persistently high inflation.