The US Thanksgiving holiday week offers a historical drain on liquidity and boost in speculative reach. However, against the backdrop of rate speculation, protectionism and uneven risk trends; shallow markets may impose more risk than relief.
US Dollar Forecast – Quiet Will Not Serve Well a Dollar Already Stretched at 13-Year Highs
The Dollar’s performance these past weeks is undeniably extraordinary. Through this past Friday’s close, the ICE’s Dollar Index (DXY) notched 10 consecutive days of climb – the longest bull run since June 2013 – to reach highs not seen in over 13 years.
Japanese Yen Forecast – Japanese Yen Braces for Volatility as Trump Stirs the Pot
The Japanese Yen plummeted for the second-consecutive week as the US Dollar surged to 13-year highs, and a continuation of the so-called US President Elect ‘Trump Rally’ could push it to further lows. A holiday-shortened week for North American markets will shift focus to Japan.
British Pound Forecast – GBP Flash Crash Rebound Fizzles- UK Budget to Offer Limited Relief
Recent price action casts a bearish outlook for GBP/USD as the recovery from the 2016-low (1.1905) appears to be losing momentum, and the British Pound may continue to give back the rebound following the October ‘flash crash’ should the Autumn Budget Statement highlight a weakened outlook for the U.K. economy.
Australian Dollar Forecast – Australian Dollar Mired in Fallout from US Presidential Election
The Australian Dollar accelerated downward as expected as financial markets continued to reckon with the implications of an on-coming economic policy pivot following the US presidential election. Traders are betting that grandiose fiscal stimulus championed by President-elect Trump will prove inflationary, pushing the Fed along a steeper rate hike path.
New Zealand Dollar Forecast – Domestic Data Helps Shield New Zealand Dollar Against Crosses
