The pandemic continues hurting economic activity in China, the war in Ukraine is hitting the entire European economy, and the Fed's efforts to control inflation threaten to trigger a recession.
Major currencies mostly little changed on the session
2020-11-26 • Updated
Ichimoku Kinko Hyo
EUR/JPY: The pair is trading below the cloud. A downward pressure would lead the pair to exit further the cloud, confirming a bearish outlook.
XAU/USD: Gold after a remarkable sell off is trading significantly lower and bears still struggling to keep price above the 23.6% retracement area.
US Market View
US markets are closed for Thanksgiving on Thursday. Biden urged Americans to avoid big family gatherings and to wear protective masks and maintain social distancing as COVID-19 cases soar. Wednesday's economic data showed that US jobless claims increased for a second consecutive week suggesting more pain ahead as business restrictions and partial lockdowns continue to hurt employment. In Europe, a survey showed that German consumer morale fell further heading into December, as a partial lockdown in Europe's largest economy hit households' income and willingness to spend money. Markets participants are closely watching trade talks between Britain and the European Union, with little more than a month until the status-quo transition period ends on Dec. 31. Britain's finance minister said on Thursday that "it's clear what the shape of the deal looks like" but that the United Kingdom should not be stretching for a deal at any cost.
Eurozone government bonds were little changed, with Germany's benchmark Bund yield at -0.571%, as investors waited for the European Central Bank's October meeting minutes. Merkel told parliament that lockdown measures will be in place until at least the end of December and possibly much longer.
Oil slipped from seven-month highs on Thursday as signs of growing supplies helped to halt a rally driven by optimism after three major pharmaceutical companies announced progress on vaccines that could start to be rolled out before the year-end. European shares were mixed on Thursday and world shares held near all-time highs after a strong Asian session in which market euphoria around COVID-19 vaccines, Joe Biden's US presidential election win, and hopes for further stimulus outweighed worsening US data.
World shares are having their best month on record this November, boosted by a slew of positive vaccine announcements and hopes that Biden's administration will deliver more economic stimulus and political stability.
USA Key Point
- Major currencies mostly little changed on the session
- Ireland's Coveney supports that Brexit talks are at a 'sensitive point'
- ECB's Holzmann supports that cannot rule out the possibility that ECB could implement new policy tools
- Merkel supports that easing virus curbs would not be responsible
Great Britain released retail sales data on May 20, 9:00 GMT+3. The reading outperformed expectations greatly (+1.4% actual vs. -0.3% forecast).
Japan's inflation is set to reach 2% in April's reading, for the first time since 2015. But what about the weaker Yen?!
What happened? US stocks ended sharply higher on Thursday, May 27, after a 7-week losing streak…
Next week, we expect the BOC rate statement, the OPEC+ meeting, and the Nonfarm payrolls release. Let's look at the opportunities in detail!
Amazon announced the company is going to make a 1 – 20 stock split on June 3 after the trading session close (23:30 GMT+3).