The US dollar reverses the previous week’s corrective bounce as it refreshes the weekly low by declining for the third consecutive day. The greenback’s weakness helped commodities and Antipodeans to print gains but a Thanksgiving holiday restricts the market’s moves.
Even so, the firmer sentiment keeps the riskier assets on the bull’s radar, mainly backed by the previous day’s dovish Fed Minutes and expectations of more stimulus from China. In doing so, the traders ignore COVID-19 woes from the dragon nation, as well as the mixed data from Japan.
Japanese yen leads the G10 currencies that cheer the USD weakness while USDCAD stands on the other hand after witnessing cautious comments from the Bank of Canada (BOC) officials.
Elsewhere, BTCUSD and ETHUSD both print a three-day downtrend even as the FTX fiasco roils crypto traders’ confidence.
Following are the latest moves of the key assets:
The latest minutes of the Federal Open Market Committee (FOMC) Meeting suggest that the policymakers mostly agreed on reducing the pace of rate hikes. The Fed minutes also teased the pivot level and exerted additional downside pressure on the US Dollar.
With this, the global markets took a sigh of relief after witnessing multiple months of an aggressive rate hikes from the key central bank.
The risk-on mood also gains support from hopes that the Chinese government is up for other stimulus measures to help the reality and financial sector to battle the Covid-linked pessimism.
Elsewhere, BOC policymakers also appeared less hawkish while Japan’s activity and sentiment data flashed mixed outcomes. On the same line could be the RBNZ Governor Adrian Orr’s comments that tried to justify the recent hawkish action.
Above all, a lack of major catalysts and the Thanksgiving holiday allows traders to extend the previous bias.
Although the market players are likely to witness data/events from Turkey, Germany and Europe to remain active, the Thanksgiving Holiday in the US will restrict the overall action. As a result, the market players could keep the latest moves on the table but may remain cautious of a wild spike during the less liquid session.
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