Stock markets managed a decent relief rally through yesterday’s trading after Tuesday’s hard hit, the move started off in the Asian session and flowed through to the London and New York time zones. The dollar dropped off as the equity markets moved higher and a report hit the market that the Fed is starting to consider ending it’s tightening cycle earlier than expected in 2019. US Core Durable goods also missed expectation which assisted in the move south for the greenback. Oil managed a bit of a rally as well which helped the energy sector but WTI is still languishing at levels under $55/b and Brent is under $64/b and investors will be watching closely for the next move. We did see a bit of a rally in risk currencies as well with the commodity currencies having a good day against the greenback most notably the Aussie and the Loonie.
It’s Thanksgiving Day today in the US and traditionally we see holiday trading conditions increase as we move through the day. There’s still a fair amount going on in terms of Geo Political activity outside of the US and this could lead to some sharp moves across the market if we see thinner trading conditions. British PM Theresa May is in Brussels to fine tune the Brexit agreement and the pound has been ominously quiet in the last few trading sessions, so expect sterling traders to be keeping a close eye on the news wires. Also, the EU have stepped up their game against Italy by advising that the Italian government is violating fiscal rules and the 2019 budget is non-compliant, expect more volatility in the single currency if this situation escalates.
There is a real dearth of economic data due for release on the calendar today with only really the ECB Monetary Policy Meeting Accounts or much concern to investors.The majority of traders will be expecting relatively muted ranges throughout the day as we move into those Thanksgiving Holiday conditions, however they will be prepared for what could be exacerbated moves if we do see any further news on the various Geo-Political issues that are so influential in the market at the moment.