Forex Today: US Dollar Remains Under Pressure on Low Volume Holiday

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This is what you need to know to trade today thursday november 24:

Pressured by disappointing macroeconomic data releases and the dovish tone of the FOMC minutes, the US dollar suffered heavy losses against its rivals and the DXY Dollar Index lost almost 1% on Wednesday. The DXY remains lower early Thursday and continues to fall despite very little holiday trading. The stock and bond markets in the United States will remain closed for the holiday of Thanksgiving Day. In the European economic agenda will be published IFO sentiment surveys and the European Central Bank will publish the minutes of their meeting of monetary policy.

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Data released by S&P Global revealed on Wednesday that business activity in the US private sector contracted sharply in November. Commenting on the data, “Business conditions across the US worsened in November,” said Chris Williamson, chief business economist at S&P Global Market Intelligence. “According to the preliminary results of the PMI survey, production and demand fell at increasing rates, consistent with the economy contracting at an annualized rate of 1%“.

The dollar selloff, sparked by gloomy PMI surveys, intensified later, after minutes from the latest US Federal Reserve meeting revealed that most monetary policy makers supported slowing rate hikes soon. According to the CME Group’s FedWatch tool, the probability of a 50 basis point Fed rate hike in December currently stands at 76%. The 10-year US Treasury yield fell nearly 2% to close the day below 3.7%. Meanwhile, Wall Street’s main indices closed higher, reflecting the positive impact of the Fed’s release on risk sentiment.

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The EUR/USD took advantage of the widespread selling pressure surrounding the dollar and hit a fresh weekly high above 1.0400. The pair continues to rise towards 1.0450 early Thursday.

The GBP/USD gained almost 200 pips on Wednesday and broke above 1.2000. The pair is now trading at its highest level since mid-Augustabout .2100.

The USD/JPY it fell sharply for the second day in a row on Wednesday, erasing all its weekly gains. The pair continues to push lower early Thursday and is trading below 139.00.

The price of Prayed took advantage of falling US Treasury yields and closed above $1,750 on Wednesday. The XAU/USD advances towards $1,760 in the European morning.

Positive sentiment for risk helped the Bitcoin to find demand and BTC/USD is now up almost 1% on the day at around $16,700. Similarly, the ethereum it is already up more than 2% on the day to $1,200, after gaining 4% on Wednesday.

Source: Fx Street

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