• Markets calm as shoppers clash
  • Is Brexit going to be all that bad?
  • U.K. data comes in strong
  • U.S. Wholesale Inventories support rate hike

Hopefully everyone had an excellent Thanksgiving, and you all have gained the energy to battle the frenzied shopping masses on Black Friday. Markets seem content to take profits today, as we’re seeing currencies give back gains. Now that a rate hike in December is completely priced in, it seems the dollar has lost the leg it had to stand on for its recent spike.

“Brexit Shmexit,” the data says. Q3 GDP figures were released for the U.K. this morning, showing a rise of .5% from Q2. Consumer spending and business investment, two critical areas feared to be adversely impacted by the referendum vote in June, came in much stronger than expected. The quick impact to the sterling’s value on news of the vote may just have safeguarded the U.K. economy, at least in the near term.

In the U.S. Wholesale Inventories for the month of October showed a surprise draw of -.4% versus a consensus addition of .3%. A shrinking of manufacturing inventories shows greater-than-expected sales, and is thus a foreshadowing of positive sales figures and consumer spending. This is a big positive for the U.S. economy, particularly ahead of the biggest spending month of the year.

EUR/USD: Euro has the upper hand against the dollar today after a huge losing streak the past couple of weeks.

GBP/USD: Sterling is down slightly against the dollar. Traders will be watching Sterling/Dollar closely next week after the positive data released today to see if optimism surrounding post-Brexit data will lead to a rise in the pound.

AUD/USD: Aussie dollar continues to regain ground against the U.S. dollar.

USD/CAD: U.S. dollar hasn’t really moved against Canadian dollar this morning, even though oil futures are down 1.75% at the time of this writing.