U.S. Dollar Crowned King After 28-Year Record of Gains

USD

The U.S. Dollar is dominating, extending its winning streak to nine consecutive days of gains. According to the Bloomberg Dollar Spot Index, the greenback is 4.2% stronger since November 9th. USD achieved its best two-week performance in 28 years.

No data today means the dollar may continue to improve based on statements and market movements elsewhere. With 96% odds of a hike at the next FOMC meeting, traders are confident keeping their dollar positions as troubles affect other major counterparts globally.

We have a slew of data due next week prior to Turkey Day celebrations. Headlines in Europe and Asia may take over today as we close the week without significant events in the U.S.

EUR

The Euro weakened an additional 2.0% this week as a result of dovish sentiment in the European Central Bank and growing woes over Brexit as well as other potential reforms. USD is on a positive nine-day run against the Euro, the longest streak since the shared currency was introduced in 1999.

ECB President Mario Draghi did not help fight the Euro’s depreciation as he stated overnight that the central bank is committed to its supportive monetary policy and accommodative policies will remain a “key ingredient” of economic growth in years to come. Draghi’s committee will meet on December 8th and there’s likelihood of extending the current quantitative easing program beyond March 2017 when it’s slated to end.

GBP

Sterling lost over 2.0% of its value throughout the week regardless of good fundamental economic data in which unemployment fell and sales went up. The harsh reality of the difficulties in separating the UK from the rest of the EU is starting to settle in the minds and hearts of all parties involved. Businesses in Britain are concerned they will not be able to sell to their primary customer base in the continent and banks are certainly making plans to abandon London. 

In recent weeks, some popular grocery items have been removed from stores as companies rework deals with foreign vendors, adjusting for the loss in profit margins with a declining GBP. Foreign Secretary Boris Johnson and Prime Minister Theresa May have much work to do in stabilizing the situation, perhaps take a less aggressive tone with European leaders who are growing exhausted with their demands to remain partially connected.