The US Dollar seems to be set for a third week of consecutive losses as we enter into this week’s last day of trading. This week was shorter with Thursday being Thanksgiving day and US markets were closed. Incidentally it was also a national holiday in Japan so volumes were thinner.
In the meantime the euro was able to take the cue from a weaker USD and we are seeing EURUSD close to re-testing last week’s highs of 1.1861, at the time of writing the currency pair is trading at 1.1854.
Tradertip daily scenario expects the current rise to enter into resistance by 1.1866/1.1882 levels after which a small correction may kick in. Needless to say a breach of 1.1882 is bullish.
Despite the weekly drop in the US Dollar, the trajectory of Gold prices was less evident with gold slightly below its weekly open. Currently the yellow metal is at $1291.85.
Last Monday gold suffered a significant daily drop, in fact the biggest daily drop in 2 months, when news of the German political turmoil hit the market and traders flocked to support the USD. Needlessly to say a higher USD left its toll on Gold that day. So far despite still losing 2$ with respect to weekly open gold has at least managed to offset much of the week’s loss.
The highlights of Friday’s economic docket are German IFO index and US Manufacturing PMI other than that the rest of the data is not expected to have signifcant impact for markets.
