Forex Today: Optimism weighs on the US Dollar as markets remain quiet

During the Asian session, New Zealand Q3 Retail Sales and Japan CPI and PMI data are due. Later in the day, the German Q3 GDP and the IFO Survey. Canada will release Retail Sales data. Additionally, the US PMI and Canada Retail Sales will also be published. 

Here is what you need to know on Friday, November 24:

The US Dollar dropped modestly on Thursday in a low-volume session, with US markets closed due to Thanksgiving. The holiday shopping season starts in the US with Black Friday.

The US Dollar Index (DXY) held below 104.00 and settled around 103.75. Wall Street futures are in positive territory after European markets posted gains.

No official data is due from the US on Friday, and it will be a shortened session on Wall Street. The US S&P Global PMI is due, with a slight deterioration expected in the Services sector from 50.6 to 50.4 and in the Manufacturing sector from 50 to 49.8.

The Euro received a modest boost from Eurozone PMI data that surpassed expectations. The European Central Bank's account of the latest meeting offered no new information. EUR/USD is consolidating around 1.0900, moving without a clear direction, although the main trend is up. On Friday, a new reading of German Q3 GDP is due, along with the IFO Survey. ECB President Christine Lagarde will speak at an event in Frankfurt, but it is not expected that she will share views on monetary policy.

The Pound outperformed on Thursday, boosted by UK PMI data. GBP/USD hit a two-month high and then pulled back modestly to 1.2530. EUR/GBP posted its lowest close in three weeks, slightly below 0.8700.

USD/JPY rebounded during the American session back to the 149.60 area, confirming the recent recovery. Japan will report the Consumer Price Index for October. Also due is the Jibun PMI.

Japan CPI Preview: Forecasts from four major banks, inflation likely picked up

NZD/USD held above 0.6000 but remained limited by 0.6050. New Zealand will report Q3 Retail Sales.

USD/CAD hit weekly lows near 1.3650 but then rebounded back to the 1.3700 area, holding above the 55-day Simple Moving Average. Canada will report September Retail Sales on Friday.

AUD/USD rose despite Australian PMI hitting multi-month lows. The pair is hovering around 0.6550 amid subdued price action.