The dollar is rallying across the board in thin pre-Thanksgiving trade.
Equities are near their highs for the day, up 1.4% while bond yields are firm as investors shed safe-havens. Commodities are rallying nicely as well, up 1.4%, using the CRB index for reference.
Why then, is the dollar higher? Good question. I suspect we’re seeing the usual real-money flows coming into the market at mid-afternoon and there is no natural or speculative interest to take the other side.
What are we to make of today’s price action as a whole? Bearish.
While we bounced off the 200-day moving average and unwound some of the heavily oversold short-term techs, we were unable to rebound above the 50% Fibo of the 1.2287/1.4283 decline which fueled yesterday’s decline. Looks like a bearish consolidation when you take a step back.
EUR/USD is down to 1.3325 in very thin trade.
