N.Y. FX Outlook
N.Y. FX Outlook: The dollar recovered some ground in London morning trade, after falling back from recent trend highs during the Asian session. Profit taking in what is generally perceived as an over bought market was behind the overnight drop in the greenback, though given the potential for more aggressive Fed action in the coming year, and prospects for Trumpflation, the USD may well remain in buy-the-dip mode for the foreseeable future. The U.S. calendar is light, though ends in a crescendo with the November nonfarm payroll report. Today's slate has just the November Dallas Fed index on tap. Analysts expect an improvement to 3.0 from -1.5 in October. The market will begin to set up for rest of the week's reports where the second look at Q3 GDP, consumer confidence, the ADP job survey, and manufacturing ISM all feature ahead of Friday's key employment report.