Forex markets quiet amid US holiday
Here’s what you need to know on Thursday, November 27:
Trading activity slowed across global financial markets on Thursday as the Thanksgiving Day holiday in the United States thinned volumes. The European economic calendar features business and consumer sentiment data, while the European Central Bank (ECB) is set to release the minutes of its October policy meeting.
The US Dollar (USD) struggled to maintain momentum this week, posting losses against most major currencies. It was weakest against the New Zealand Dollar (NZD), falling 1.80%. Other notable declines include:
1.04% vs Australian Dollar (AUD)
0.98% vs British Pound (GBP)
0.61% vs Euro (EUR)
The USD Index (DXY) hovered slightly above 99.50 early Thursday, down more than 0.5% on the week.
Initial Jobless Claims: Fell to 216,000 for the week ending November 22, a seven-month low
Durable Goods Orders: Rose 0.5% in September, beating expectations of 0.3%
Wall Street: Major indexes extended weekly gains on Wednesday, reflecting a risk-positive mood
Despite upbeat data, the risk-on environment limited the USD’s ability to recover.
UK Finance Minister Rachel Reeves unveiled the Autumn Budget on Wednesday:
A 2% increase in taxes on savings, dividends, and property income
Extension of the income tax threshold freeze until 2028
Alcohol duties to rise in line with inflation
GBP/USD rose about 0.6% on Wednesday, reaching a one-month high near 1.3270 in the Asian session before consolidating below 1.3250.
EUR/USD: After two days of gains, tested 1.1610 in the Asian session and now trades below 1.1600
USD/JPY: Rebounded midweek but slipped toward 156.00 early Thursday amid cautious sentiment
Gold (XAU/USD) remains supported above $4,150 after rising 0.8% on Wednesday. Growing expectations for a Federal Reserve rate cut in December continue to underpin bullish sentiment in the precious metal.
Russia confirmed that peace talks with Ukraine—brokered by the United States—are serious, though Kremlin spokesperson Dmitry Peskov warned that a final agreement remains distant and no major concessions will be offered. The President of the United States stated that a Ukraine–Russia agreement is “very close,” fueling optimism and supporting risk sentiment.
Summary:Forex markets remain subdued amid the US holiday, with the Dollar under pressure despite strong macro data. GBP and NZD outperform, while EUR and JPY trade in narrow ranges. Gold holds firm above $4,150 as rate cut expectations and geopolitical optimism shape sentiment.