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Markets Quiet on Thanksgiving22 November 2018 by Dave Evans

Morning Report: 07.00 London

The dollar index is on the back foot this morning, with small amounts of follow-on selling from yesterday’s reversal. US core durable goods orders came in worse than expected yesterday. Markets are generally quiet though with US equity market closed for Thanksgiving.

The EUR/USD is building on yesterday’s tentative gains, but the damage of Tuesday’s reversal is still being felt. The pound is also making tentative gains this morning, but Sterling remains on the back foot, with the lows in touching distance amid general Brexit malaise. The euro maintains the upper hand on the pound, with the EUR/GBP set to challenge the November highs and building on last week’s rally.

The AUD/USD is lagging however, posting small losses. The Aussie remains one of the top performers for November though, with the AUD/USD and AUD/JPY up 2.55% and 2.58% respectively.

The USD/CAD reversed the majority of its Tuesday rally yesterday and is unchanged this morning as the Canadian dollar regains its strength.

Meanwhile, the USD/CHF pullback continues, albeit at a slow pace, with the pair closing below 0.9950 for the fourth day in a row.

Yen pairs are mixed, with the USD/JPY unchanged and the GBP/JPY and EUR/JPY Making tentative gains.

Coming up today

US markets are close for Thanksgiving today.

At 14.45, we have BOC governing council member Wilkins speaking.

MPC member Saunders speaks at 20.55.

Trade Idea

The pound is subdued amid talk of Theresa May’s various meetings, with aborted summits and short term stays.

Nov 22nd 2018: Markets Quiet on Thanksgiving

The risk very much remains to the downside for the pound and good way to play this is a ONE TOUCH trade predicting that the GBP/USD touch 1.2700 within 14 days could return 216%.

Nov 22nd 2018: Markets Quiet on Thanksgiving