The US Dollar depreciates for the second consecutive day and approaches support at 0.8645.
The focus today is on the US PCE Prices Index but the highlight of the week is Friday’s NFP report.
A break of 0.8645 would confirm a double top at 0.8700.
The US Dollar is on the back foot on Thursday, with investors bracing for the release of October’s PCE Prices Index data. The USD/CHF is testing the support area at 0.8645 after being rejected at the 0.8700 area.The US PCE Prices Index is expected to show that inflationary pressures kept cooling at a gradual pace in October. If there are no surprises, these figures would endorse the idea of a 25 bps cut next week.

US Nonfarm Payrolls might accelerate US Dollar’s correction

The week’s highlight,

Canadian Dollar gives away gains as USD bounces up following strong Retail Sales data.
Investors’ concern that Middle East conflict might escalate provides additional support to the safe-haven US Dollar.
Oil prices have depreciated nearly 3.5% from early April highs, adding negative pressure to CAD.
The Canadian Dollar (CAD) recovery attempt seen during Monday’s European session has been short-lived. The US Dollar has resumed its bullish trend as better-than-expected retail consumption data has confirmed the strong momentum of the US economy.The strong Retail Sales figures come after last week’s sticky inflation numbers, strengthening the view that the Federal Reserve (Fed) will be keeping rates higher for longer. This is supporting the US