Lack of direction in slow markets
Low volumes and tight ranges were the order of the day in Asian trading today. Traders showed no inclination to get involved, with no significant data points to drive direction either. The US dollar was flat while EUR/USD posted small gains and USD/JPY small losses. New Zealand’s dollar was the under-performer among the G-10 spectrum, slipping just over 0.2%. NZD/USD remains capped by the 200-day moving average, which has contained prices since April 23.
NZD/USD Daily Chart
Debate continues about a Fed pause
The notion of a Fed pause in its hiking cycle appears to be gaining traction, with some reports suggesting it could come as early as Spring 2019. The US dollar continued its slow retreat from the peak earlier this month as 10-year US yields held steady around 3.06%, well below the near-term peak near 3.25%.
As the US sits down for its turkey Thanksgiving dinner, the data calendar will offer little to those left in trading rooms to spur activity. South African rates will probably be left unchanged at the central bank’s rate meeting while Euro-zone November consumer confidence is seen slipping to -3.0 from -2.7.
The full MarketPulse data calendar can be viewed at https://www.marketpulse.com/economic-events/
Happy Thanksgiving to those who celebrate.
OANDA Trading podcast discussing overnight markets with 938 Now
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