Advertisement
Advertisement

U.S. Holiday Limits Price Action in Forex, Commodity Markets

By:
James Hyerczyk

Volatility and volume were down in the financial markets on Thursday due to the U.S. Thanksgiving holiday. U.S. banks and major exchanges were closed

U.S. Holiday Limits Price Action in Forex, Commodity Markets

US DOLLAR
Volatility and volume were down in the financial markets on Thursday due to the U.S. Thanksgiving holiday. U.S. banks and major exchanges were closed leading to the absence of several major players in the Forex markets. Trading took place on several electronic platforms but there was very little price action. The markets, for the most part, straddled the previous day’s close.

The GBP/USD finished lower, but remained inside yesterday’s range. The market was being supported by comments from the previous day by Chancellor George Osborne. The Chancellor announced that controversial changes to tax credits would be scrapped altogether. Osborne also predicted that Britain’s economy would grow by 2.4 percent this year.

On Friday, the U.K. will release the latest Second Estimate GDP. It is expected to show a reading of 0.5%. The same as last quarter. U.K. Preliminary Business Investment is expected to show a reading of 1.5%.

When the Forex markets reopen on Friday, the focus will be on the EUR/USD. Earlier in the week, this Forex pair plunged on the news that the European Central Bank policymakers were looking at widening the scope of their bond buying or implementing a two-tier penalty charge on banks that leave cash with the ECB. Specifically, the central bank is considering purchasing regional bonds and even buying bundled loans with a risk of non-payment.

January crude oil prices finished lower on Thursday after mounting a strong comeback during Wednesday’s session. The market is currently up over $2.00 from the low posted earlier in the week at $40.41. Short-covering in response to comments from the Saudi Cabinet helped put in the week’s low.

Oil trimmed losses on Wednesday after the Energy Information Administration said U.S. crude oil inventories rose 961,000 barrels last week. Analyst and traders were looking for a 1.1 million barrel rise. The rise was also smaller than the 2.6 million barrel increase reported late Tuesday by the American Petroleum Institute.

February Comex Gold finished slightly better on Thursday. Prices continued to work sideways, forming a possible support base, according to technical analysts. Despite the bullish reaction by the U.S. Dollar to the steep drop in the Euro, the gold market remained relatively calm. 

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

Did you find this article useful?

Advertisement