Little on the agenda in Europe today
However, the day will still be filled with plenty of US data later as we will see a bit of a rush before the Thanksgiving holiday kicks in tomorrow.
As a reminder to that, this is very much a holiday-shortened week with US markets set to be closed tomorrow and will close early i.e. half-day on Friday. But in all likelihood, most traders and investors will already be off after today until next week.
Anyway, risk assets continued to surge in trading yesterday with US equities establishing further upside momentum as we see the S&P 500 and Dow close at record highs. The latter even broke 30,000 for the first time and stuck with a close just above that.
Meanwhile, oil broke above its August highs to its highest levels since March as price climbs above $45 into trading today.
Elsewhere, the dollar and yen are staying pressured ahead of what will arguably be the ‘real’ final trading day of the week. EUR/USD is looking to try and push above 1.1900 still while the antipodeans are looking to break higher against the dollar.
AUD/USD is up to its highest levels since the start of September, holding above short-term resistance seen @ 0.7340. Meanwhile, NZD/USD has broken to its highest levels since June 2018 and is flirting with a test of 0.7000 since yesterday.
As for the key risk barometer i.e. AUD/JPY, the pair is still sitting just below 77.00 but is continuing to challenge the resistance region around 76.70-00 currently.
Looking ahead, it will be quiet in European trading but expect the focus to remain on the risk push/appetite and potential for Brexit headlines ahead of the weekend.
0900 GMT – Switzerland November Credit Suisse investor sentiment
Prior release can be found here. The reading measures analysts’ expectations on the Swiss economy and other economic expectations over the next 6 months.
1200 GMT – US MBA mortgage applications w.e. 20 November
Weekly US housing data, measures the change in number of applications for mortgages backed by the MBA during the week. The focus will once again be on purchases as that has been one of the more bullish spots outlining that US economic conditions are not as dire as first suggested by the recent dip due to the coronavirus impact.
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.