Thanks giving is seen by many as the beginning of the festive season and yesterday it was clear from the volumes that many investors were already preparing for the shortened trading week with many US markets closed today and not reopening fully until next Monday. With such thin volumes across all asset classes we could see some quite sharp moves and whilst European indices are set to open flat this morning, the FTSE 100’s mining sector might benefit from a rebound in metal prices on the back of the Chinese announcing that they are considering a probe into short selling following many metal prices hitting multi-year lows earlier this week.
In yet another example of the Aussie’s detachment from its past strong correlation to metal prices AUDUSD has drifted lower overnight back towards the 0.7200 level which is seen as near term support, sitting at 0.7220 at the time of writing. The euro is also under pressure having hit a 7 month low below the 1.0600 level yesterday and it is unlikely that EURUSD will see much upside in the run up to the ECB meeting in one week’s time where expectations that Draghi will take further action to weaken the single currency are increasing.
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