Corrective Slow-down For USD Ahead of Thanksgiving

Barchart · 11/26 02:58

We’re observing a mixed picture in the FX market today, after Trump announced the possibility of new tariffs on Canada and Mexico. As a result, commodity currencies are falling sharply against the dollar, while the euro and pound remain surprisingly stable. Gold turned lower yesterday, especially following news of a potential ceasefire deal between Hamas and Israel. This impact was most visible in crude oil, which dropped significantly in the last 24 hours. Looking at the dollar overall, it appears to be pausing within a higher-degree uptrend. However, these pauses can sometimes last longer, especially when its a Thanksgiving week, which could slow markets in the second half of the week. So for now, I believe the correction in the Dollar Index isn’t complete, and further downside could be seen, potentially targeting the 106.50-106 area.; a zone where correction can come to an end. 

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GH
 


On the date of publication, Gregor Horvat did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.