The US dollar fell last week from a 17-month high of 97.70, with a few important economic data in the US this week, and US markets will be off on Thursday celebrating Thanksgiving.
This week, markets will be eyeing on developments of the China-US trade dispute following news that the United States may temporarily suspend tariffs. Trump stressed that there would be no negotiation of a trade agreement with China's real response to their demands.
The United States has imposed tariffs of 250 billion dollars on Chinese goods in light of the unprecedented US trade deficit with China, which amounted to 375 billion dollars. US President Donald Trump is expected to meet his Chinese counterpart on the sidelines of the upcoming G-20 summit in Argentina next month.
Also, attention will be focused on the Euro group meetings as the debate over the Italian budget of 2019 continues and the Italian government holds a 2.4% deficit amid threats of sanctions from the European Commission.
Pressure on the pound will also continue amid last week's turmoil and Theresa May's crisis after more than one minister resigned in protest of the latest deal. May said the next few days would be crucial for them. There will be a hearing on the Bank of England inflation report on Thursday before parliament.
This week, a number of meeting minutes will be issued to a number of major central banks, starting with the Reserve Bank of Australia on Tuesday morning, which has kept interest rates unchanged for more than two years. The Bank of Japan will release monetary policy report at the same day.
Also, the ECB will release its minutes of its last meeting, which has kept its policy unchanged, and markets are looking to announce the end of the bond purchase program next month as the recent improvement in the euro area economy has improved.
