The USD is breaking to the upside today with the greenback benefitting from risk aversion as investors are increasingly concerned about a China slowdown due to the recent Covid surge. Technically, the USD is moving away /r through key technical levels. The EURUSD fell below the 200 hour MA on the downside and below a short term retracement target as well. The USDJPY moved above its 100 day MA and 200 hour MA after using the 100 day MA as a ceiling level last week. You can review the key technical levels coming into the week and understand "why" by view the weekend forex technical report by clicking on the video below.
This week is a holiday shortened week in the US with the Thanksgiving holiday slicing the end of the week off for the most part on Thursday. Friday is not a holiday. The stocks and bond markets are open, but staffing is generally lighter. Friday is also "Black Friday" which is the kickoff for the holiday shopping season.
The US stock indices are lower in early trading despite the news that Disney is replacing its CEO with the prior CEO Bob Iger for the next 2-years in an attempt to turn around the entertainment giant. Disney shares are up 9.62% but the S&P is lower by around 20 points in pre-market trading.
US yields are higher ahead of unusual 2 and 5 year note auctions at 1 PM today (to frontload the supply ahead of the holiday on Thursday).
- The Fed minutes will be released on Wednesday ahead of the holiday on Thursday.
- The RBNZ will announce their rate decision on Tuesday night in the US/Wednesday morning in NZ.
- The flash PMI data will be announced in Europe and the US on Wednesday
A snapshot currently shows:
- Spot gold is down $8 or -0.47% at $1742.38
- Spot silver is trading down $0.26 or -1.23% at $20.67
- WTI crude oil is trading at $79.68. On Friday crude oil settled at $80.08
- bitcoin is trading at $16 $165. The low for the day reached $15,879. The most recent cycle low reached $15,632 back on November 9
in the premarket for US stocks, the major indices are down modestly:
- Dow industrial average -50 points after Friday's 199.37 point rise
- S&P index is down 15 points after Friday's 18.78 point rise
- NASDAQ index is down -70 points after Friday's 1.10 point rise
in the European equity markets:
- German DAX -0.43%
- France's CAC -0.19%
- UK's FTSE 100 +0.10%
- Spain's Ibex +0.24%
- Italy's FTSE MIB -1.0%
in the US debt market, the short end yields are higher while the 30 year is down marginally. The 2 – 10 year spread is near the most inverted levels going back to at least 1988, as traders anticipating US recession as a result of over tightened Fed policy:
in the European debt market, the benchmark 10 year yields are mostly higher:
