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FX Today: Attention shifts to the euro docket on Thanksgiving Day holiday

The US Dollar (USD) remained on the back foot on Wednesday despite auspicious US data releases ahead of the Thanksgiving Day holiday. Meanwhile, investors continued to see the Federal Reserve delivering another rate cut in December.

Here’s what to watch on Thursday, November 27:

The US Dollar Index (DXY) dropped for the fourth day in a row, retesting multi-day lows near 99.60 despite the rebound in US Treasury yields and firm data releases. The ISM Manufacturing PMI, Construction Spending at the final S&P Global Manufacturing PMI are next on tap on the US calendar on December 1.

EUR/USD rose to fresh multi-day highs, retesting the key 1.1600 barrier in response to further weakness in the Greenback. Germany’s GfK Consumer Confidence is due, seconded by the final Consumer Confidence in the euro area and the Consumer Inflation Expectations survey. In addition, the ECB will publish its Accounts alongside the M3 Money Supply figures. Furthermore, the ECB’s Cipollone, De Guindos, Machado and Tuominen are due to speak.

GBP/USD extended its march north for the fifth consecutive day, surpassing the 1.3200 hurdle and reaching four-week highs as investors assessed Chancellor Reeves’ Autumn Budget. Next on tap across the Channel will be the Nationwide Housing Prices on November 28.

USD/JPY set aside part of Tuesday’s deep retracement, regaining traction and revisiting the 156.70 region. The speech by the BoJ’s Noguchi will be the only event on the Japanese docket.

AUD/USD accelerated its upside impulse on Wednesday, reclaming the 0.6500 barrier and above. The quarterly Private Capital Expenditure prints will be the salient event in Oz.

WTI prices reversed Tuesday’s decline, regaining the $58.00 mark per barrel as traders remained watchful of the geopolitical scenario and oversupply concerns, while assessing the unexpected weekly build in US crude oil stockpiles.

Gold prices climbed to eight-day highs past the $4,170 mark per troy ounce amid marginal losses in the Greenback and speculation of extra rate cuts by the Federal Reserve. The widespread bounce in US Treasury yields, however, limited the upside somewhat. Silver prices rose for the third consecutive day, this time hitting fresh two-week highs well north of the $53.00 mark per ounce.

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Pablo Piovano

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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