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The dollar was struggling on a low volatile trading day as the country observes Thanksgiving Day. The Fed’s decision to go slow on rate hikes weighed on the dollar and gave it a bearish outlook. Investors abandoned the dollar on black Friday as they bid on riskier assets. In Europe, Germany saw improved growth in final Q3 GDP readings.
EURJPY soared by +0 42% following German’s improved growth data. The euro area’s biggest economy, Germany, realized growth in the third quarter as shown by the final GDP data which came in at 0.4% in Q3 vs the 0.3% expected. In the published ECB monetary policy minutes the members said to continue hiking rates although it is still a question of how big. Tokyo Core CPI surged to 3.6% from 3.4% but failed to have a long-term effect on the pair. The pair bounced off 144.20 previous high turned support as targets may be seen at 145.40 and 145.65.
GBPAUD gained +0.17% as China’s covid woes weigh on the AUD. Covid-19 cases rose to 30 000 which is the highest daily record since the pandemic as the country introduces more measures to curb the virus. Risk on sentiment on the day boosted the sterling on Black Friday. The pair left support at 1.7880 as bulls got capped by the 1.7950 resistance. Targets may be seen at 1.8000 and 1.8150 if the current resistance fails to hold. Otherwise, a pullback to 1.7800 may be witnessed in the short term.
USDCAD shaded earlier gains and is trading at +0.06% as the US observes a Thanksgiving Day Holiday on a Black Friday. Expectations of a slower rate-hiking pace by fed officials weakened the dollar against its rivals. The CAD was supported by an uptick in oil prices on the day ahead of the G-7 meeting next week where they are set to announce the Russian oil price cap. Bears took over from 1.3364 broken support turned resistance as the pair moved in a falling channel. A break below the 1.3300 support may give bears 1.3220 in the medium term.
European stocks were a bit mixed in the low-volatile market as investors digest the German GDP and consumer confidence data. As of 13.00 GMT+2, the German 40 was down -0.04% ranging between 14580 and 14500. The potential to go higher may be limited by 14700 resistance. The FTSE100 gained +0.21% as bulls challenged the 7500 psychological high. A break above may give bulls 7580 and 7650. CAC40 soared by +0.18% after leaving support at 6685 and may be capped by 6800.
US stock futures were quite mixed with the Nasdaq100 futures trading at -0.44% lower from the 11900 high as near-term targets may be seen at 11800 and 11600 0n the slide. The S&P 100 futures trimmed -0.06% although it is trading in a tight range of 4040 and 4026. The DJIA futures were flat at +0.01% as 34000 is a key area to watch on the downside.
Additionally, gold is traded on the back foot on Friday as treasury yields slightly bounce back along with the dollar. FOMC meeting minutes published on Wednesday suggested that members were looking to slow the pace of hiking rates in their coming meetings. This weighed on the dollar and treasury yields and boosted gold to $1760. A rally to $1780 and $1800 may be witnessed in the medium term.
