- US bond and stocks markets are closed due to Thanksgiving Day holiday.
- US Dollar Index continues to float above 98.30.
- Coming up: Consumer Confidence Index data from Japan.
The USD/JPY pair lost its traction during the Asian trading hours as the market mood soured after US President Trump signed the Hong Kong Human Rights and Democracy Act into law to further escalate the geopolitical tensions with China. Following a drop to 109.30 area, the pair staged a technical rebound during the European trading hours and turned flat on the day at 109.55.
USD preserves strength
On Wednesday, the US Bureau of Economic Analysis' second estimate of the third-quarter Gross Domestic Product (GDP) rose to 2.1% from 1.9% and came in higher than the market expectation of 1.9% to help the greenback continue to outperform its rivals.
The US Dollar Index, which tracks the USD's value against a basket of six major currencies, rose to a fresh two-week high of 98.44 before going into a consolidation phase on Thursday. With the market action turning subdued on US Thanksgiving day, the index is posting modest gains above the 98.30 mark.
In the early trading hours of the Asian session on Friday, Consumer Confidence Index, Housing Starts and Vehicle Production data from Japan will be looked upon for fresh impetus. Although the US bond and stocks market will return to action on Friday, they will be closed during the first half of the day and are unlikely to provide any clues regarding the market sentiment.
Technical levels to watch for
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