The US Dollar lost its footing in Asia in thin, choppy trading ahead of the US Thanksgiving holiday as investors wondered if the Buck could keep its strength in the near term amid talk that the US Fed will once again lower interest rates to help curtail a recession.
EUR/USD continued to inch higher from its NY lows of 1.2818 to cap out at 1.2937 in Asia as funds continued to demand US Dollars amid a flurry of end of year investor redemptions. The same story stood true for USD/JPY as a NY high of 95.94 was systematically erased as the Asia session progressed and a dip below 95.00 was tallied. Many market moves in the FX market were profound due to poor liquidity due to the US holiday. US markets are closed for the Thanksgiving holiday tomorrow and Friday they close at 1pm (EST) in a shortened day.

Among other pairs, GBP/USD continues is move up from its NY low of 1.5174 as it pushed through 1.5410 in Asia and looked to get back to its 1.5440 highs from yesterday. What we are seeing on the near horizon is that once this week's holiday is over in the US everyone will focus on possible rate cuts by the ECB and the US FED. Both central banks are widely expected to cut rates at their next meetings, the ECB by 50 basis points and the Fed by as much as 75 basis points.

For now however the focus is on the current terrorist situation in Mumbai, India, and the heightened security in the US, especially in New York City amid warnings of terrorist plots against subways and trains. Holiday thinned markets and terrorist attacks could be catastrophic for the FX markets. For now, lets focus on the positive, Happy Thanksgiving, enjoy the holiday.

Upcoming Economic Data Releases (London Session):

11/27/20087:00GEILO Unemployment RateOCT 7.10%7.10%
11/27/20088:55GEUnemployment Change (000's)NOV-26K-5K
11/27/20088:55GEUnemployment Rate (s.a)NOV- -7.50%
11/27/20088:55GEGermany Publishes November Unemployment Figures27-Nov
11/27/20089:00ECEuro-Zone M3 s.a. (YoY)OCT8.60%8.10%
11/27/20089:00ECBloomberg Eurozone Retail PMINOV44.3- -
11/27/20089:00ECEuro-Zone M3 s.a. 3 mth ave.OCT8.90%8.50%
11/27/200810:00ECBusiness Climate IndicatorNOV-1.34-1.57
11/27/200810:00ECEuro-Zone Consumer ConfidenceNOV-24-25
11/27/200810:00ECEuro-Zone Economic ConfidenceNOV80.478.3
11/27/200810:00ECEuro-Zone Indust. ConfidenceNOV-18-21
11/27/200810:00ECEuro-Zone Services Confidence NOV-6-8
11/27/200810:00ECEuropean Commission Publishes Economic Sentiment27-Nov
11/27/200810:00ECEuropean Commission Publishes Business Climate Index27-Nov
11/27/200818:00FRTotal JobseekersOCT1957.6- -