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A reminder that tomorrow is Thanksgiving so this week’s trading conditions may be affected a bit by that, things may be more complicated today before settling down before the holidays.
I know it’s not a public holiday on Friday, but US traders will usually be off for an extended weekend so it can be expected that things will be quieter at this time as well.
The dollar continues to hold a good position overall, although USD / JPY buyers still struggle to maintain a break above the 115.00 mark. This remains a key point to watch this week and whether or not the momentum can continue for the greenback.
Meanwhile, the kiwi is facing pressure after the RBNZ announced a 25bp rate hike – some were hoping for a 50bp move – as the NZD / USD tests 0.6900. Additional support is seen closer to the late September lows @ 0.6860, so keep an eye out for that too.
Elsewhere, the oil market reaction is shaping up as it should with a “sell the rumor, buy the fact” movement although I would argue that the gains may be more limited as we wait for the OPEC + decision next week.
But overall, it reaffirms the feeling that the SPR release is not a major drag on oil prices, but beware of the global COVID-19 situation as it could hamper demand conditions for it. next year – especially in Europe.
What is your view of the market now? Share your thoughts / ideas with the ForexLive community here.