Thursday, November 28 brings a quiet start to forex trading as markets await key economic data from Germany and the Eurozone. The release of regional and national Consumer Price Index (CPI) figures from Germany, alongside business and consumer sentiment data from the Eurozone, holds potential to drive market movements. Meanwhile, US markets remain closed for Thanksgiving, contributing to reduced activity.
US Dollar Faces Midweek Pressure
The US Dollar (USD) weakened midweek following a series of mixed macroeconomic data releases. Month-end flows ahead of the holiday weekend added to the downward pressure. Key data highlights included:
Durable Goods Orders increased by 0.2% in October, falling short of the 0.5% market forecast.
Weekly Jobless Claims edged lower to 213,000 from the prior week's 215,000.
The Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve's preferred inflation measure, rose 2.3% annually, aligning with expectations. Core PCE inflation ticked up to 2.8% from 2.7%.
After shedding 0.8% on Wednesday, the USD Index showed signs of recovery early Thursday, hovering above the 106.00 mark.
EUR/USD Holds Gains Amid German and Spanish Inflation Focus
EUR/USD gained bullish momentum midweek, reaching a fresh weekly high near 1.0600 before settling at around 1.0550 during Thursday’s European session. Traders remain focused on German inflation data, with additional insights expected from Spain’s CPI figures, which are also part of the European economic calendar.
GBP/USD Consolidates Recent Gains
Benefiting from USD weakness, GBP/USD achieved notable gains on Wednesday. The pair entered a consolidation phase and traded just above 1.2650 early Thursday, maintaining stability within a narrow range.
Gold Fluctuates Below $2,640
Gold climbed above $2,650 on Wednesday but pared most of its gains by the end of the day. In the European session Thursday, XAU/USD exhibited limited movement, remaining below $2,640 as market activity slowed during the US holiday.
USD/JPY Recovers from Monthly Lows
USD/JPY faced significant selling pressure midweek, touching a one-month low near 150.50 after a 1.3% daily drop on Wednesday. However, the pair rebounded to trade above 151.50 early Thursday. Looking ahead, traders will monitor Japanese economic data, including Tokyo CPI, Industrial Production, Unemployment Rate, and Retail Trade, set for release in the Asian session.
Summary: The forex markets remain subdued with limited volatility as traders await German inflation and Eurozone sentiment data. While the USD Index shows modest recovery, major pairs such as EUR/USD, GBP/USD, and USD/JPY reflect the broader trends in market activity. Gold remains steady below $2,640, reflecting the quiet trading environment.
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