Image Source: PixabayThe US dollar experienced its worst weekly decline since July, with negative momentum prevailing throughout the trading period. Next week will be a shortened one in the US due to the Thanksgiving holiday. The key economic report to watch will be the preliminary November PMI data. Here is what you need to know for next week.The US Dollar Index (DXY) recorded a loss of 1.65% during the week, marking its worst performance since July. Data showed further softening in inflation, which weighed on the greenback by reinforcing the market’s belief that the Federal Reserve has finished raising interest rates.US Treasury yields also declined, putting additional pressure on the US dollar. Meanwhile, risk appetite prevailed, boosting Wall Street to its third consecutive weekly gain and reaching its highest level in eight weeks.The Federal Reserve will release the minutes of its latest meeting on Wednesday, but it could easily be a non-event considering the latest economic reports and Fed Chairman Jerome Powell’s comments. Wednesday will still be a busy day, with many important reports released ahead of the Thanksgiving holiday. Such reports include the weekly Jobless Claims, Durable Goods Orders, and the University of Michigan Consumer Sentiment (final reading).The short-term momentum for the US dollar remained firmly tilted to the downside on Friday. However, fundamentals indicate that US economic growth is above trend, while the Eurozone is either heading toward or already is in a recession. This divergence suggests that the decline of the dollar may not be without the risk of sharp corrections.The EUR/USD currency pair recently broke above the 1.0750 level and surpassed the 20-day Simple Moving Average (SMA), setting the outlook for more gains. The 1.10 mark may not be far off.On Monday, Germany will release the Producer Price Index (PPI) for October. On Thursday, the Eurozone Manufacturing PMIs preliminary readings for November are due. Additionally, the European Central Bank (ECB) will release the minutes of its latest meetings.Analysts at ING recently stated the following about Eurozone PMI:

“The PMIs have been pretty weak, too. We don’t expect any meaningful pickup for November as the economy suffers from weak consumption, slowing investment and sluggish external demand at the moment. A modest negative GDP growth rate for the fourth quarter is our base case for the time being.”

The GBP/USD currency pair resumed its upside, reaching the 1.2500 level before losing strength. The short-term outlook appeared to be bullish, but the pound continued to lag behind.The Monetary Policy Report Hearings will take place on Wednesday, when the Bank of England Governor and members of the Monetary Policy Committee will testify on inflation and the economy before the Parliament’s Treasury Committee. On Thursday, the UK government will present its Autumn Statement in the House of Commons.The USD/JPY currency pair experienced the biggest weekly loss since July amid a weaker US dollar and lower Treasury yields. However, the yen hit fresh cycle lows against other currencies amid risk appetite. The USD/JPY pair may be poised to extend the correction after a double top near 152.00. On Friday, the National Consumer Price Index is due.The AUD/USD pair hit monthly highs above the crucial resistance at 0.6520 this past week, but ultimately failed to hold above. Risks appeared to be tilted to the upside, but the Australian dollar remained within its recent range.Reserve Bank of Australia (RBA) Governor Michele Bullock will deliver a speech on Tuesday, a day before the release of the RBA accounts of the last meeting when the central bank raised the official Cash Rate (OCR) by 25 basis points. Bullock will speak again on Wednesday.The NZD/USD currency pair tested the 0.6050 area again and pulled back below the 0.6000 mark, ending below the 20-week SMA and hovering around the 0.5980 level, suggesting that the pair may not be ready for more gains. A break above 0.6050 would likely trigger a bullish acceleration. On Friday, New Zealand will report Q3 retail sales.The USD/CAD currency pair continued to move in a range between 1.3870 and 1.3630. The area near 1.3900 continued to be a crucial barrier that, if broken, could set the pair up for further gains. A decline to the 1.3545 level (20-week SMA) could be possible if it manages to break through the 1.3630 mark. Canada will release the October Consumer Price Index on Tuesday and Retail Sales data on Friday.After falling for two weeks, gold rebounded sharply during the past week, boosted by lower US yields. XAU/USD approached the $2,000 level, but failed to reclaim that area. The risk appeared to be tilted to the upside. Silver experienced its best week in months, surging from $22.40 to $24.15, but it pulled back below $24.00 late on Friday.More By This Author:WTI Rebounds From Weekly Low, Gains More Than 4% Amid US Sanctions, Demand Woes U.S. Dollar Closes Its Worst Week Since July As Investors Bet On A Dovish Fed Palantir Stock Forecast: PLTR Hits Two-Year High On Friday