Investors dissipate for Thanksgiving

26 November, 2015

Thanksgiving is seen by many as the beginning of the festive season and yesterday it was clear from the volumes that many investors were already preparing for the shortened trading week with many US markets closed today and not reopening fully until next Monday. With such thin volumes across all asset classes we could see some quite sharp moves and whilst European indices are set to open flat this morning, the FTSE 100’s mining sector might benefit from a rebound in metal prices on the back of the Chinese announcing that they are considering a probe into short selling following many metal prices hitting multi-year lows earlier this week.

In yet another example of the Aussie’s detachment from its past strong correlation to metal prices AUDUSD has drifted lower overnight back towards the 0.7200 level which is seen as near term support, sitting at 0.7220 at the time of writing. The euro is also under pressure having hit a 7 month low below the 1.0600 level yesterday and it is unlikely that EURUSD will see much upside in the run up to the ECB meeting in one week’s time where expectations that Draghi will take further action to weaken the single currency are increasing.


Source link  
Economic calendar is relatively light

Today is Martin Luther King’s Birthday, which is a Bank Holiday in the United States. As a result, the Economic Calendar is relatively light today...

US Tax Bill passes

On Wednesday, the US Senate approved the tax bill 51 for and 48 against, while the House of Representatives gave it final approval, passing it for the second time in two days after...

US dollar 'treading water'

USD is treading water ahead of the expected enactment of President Trump’s tax bill. The initial euphoria of lower corporation tax, that many...


CB Monetary Policy Unchanged

Thursday saw the latest Monetary Policy Committee (MPC) report from the Bank of England. The BoE stated that further modest increases...

No Surprises as Fed Raises Rates

The Federal Reserve, as expected, raised its benchmark interest rate by a quarter of a percentage point, to a range of 1.25% to 1.5%. The latest hike...

CB meetings dominate the week

With no impactful economic data releases on the calendar today, the markets are focusing on a plethora of Central Bank meetings scheduled...


No Surprises from BoC & ADP

In an unsurprising move, the Bank of Canada decided to hold its benchmark lending rate at 1%, after two small hikes earlier in 2017. The BoC stated...

Moderate Gains for USD

On Monday, the US Commerce Department released Factory Orders data for October, indicating that the continued strength in the Manufacturing...

OPEC Extends Output Cuts

On Thursday, OPEC (Organization of Petroleum Exporters) and non-OPEC producers led by Russia agreed to keep output cuts until the end of 2018...

  


Share: