The euro gives up the recent bounce; the US dollar continues to shine (Daily analysis 25.11.2021)

25 Nov 2021 9:01|Bartosz Sawicki

The dollar does not lose momentum. The EUR/USD bounce was faded once again, and the main currency pair slid below the 1.12 mark to trade at the lowest levels since summer 2020. The "Buy the dollar dips" strategy still prevails. The dynamics of the currency market reshuffle should lose momentum. In the US, the long Thanksgiving weekend begins.

The dollar continues to attract capital like a magnet. The EUR/USD reached new lows and crossed the 1.12 level. The minutes of the FOMC meeting did not contain new clues about the intentions of the Federal Reserve. It was consistent with the statement of individual representatives of the monetary authorities. Some policymakers believe it makes sense to consider accelerating the abandonment of asset purchases and raising interest rates more quickly. Speculation is intensifying that such a step could take place as early as the first half of next year. The foundations of dollar strength remain valid in this light. They were also confirmed by the weekly news from the labour market. The number of new jobless claims fell below 200,000 for the first time since the late 1960s.

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