US dollar wavers ahead of Thanksgiving holiday
The US dollar is little changed today as traders react to the vast economic numbers released today. The data showed that the American economy expanded by 33.1% in the third quarter after slumping by more than 30% in Q2. This growth was spread across all sectors with exports, personal consumption, fixed asset investments, and government spending rising. Further data showed that initial jobless claims increased by 778k last week as more states continued to lock-down their economies. Continuing claims fell from 6.3 million to slightly above 6 million. Durable and core goods orders rose by 1.3%. The currency will react to the FOMC minutes that will come out later today.
Global stocks are mixed today as traders continued to react to the news on the presidential transition and vaccine development. On transition, after weeks of hesitation, Donald Trump directed his administration officials to coordinate with President-elect Joe Biden. That provided more certainty about the upcoming transition. Analysts are also positive that regulators will allow the already-developed vaccines. This means that there is a high probability that the world will go back to normal in the coming year.
The price of crude oil wavered today as traders took profit following the sharp upward trend yesterday. Brent and West Texas Intermediate are trading at $48.05 and $45.15, respectively. This is the highest they have been since March this year and is mostly because of the upcoming vaccine. Later today, the price will react to the weekly rig count data that will be released by Baker Hughes. It will also react to the latest Energy Information Administration (EIA) inventories report. Experts expect the data to show that inventories rose by 127k barrels.
The EUR/USD pair found strong resistance after it reached a high of 1.1930. This was the highest it has been since September 1. The price has also formed a reverse hammer pattern on the four-hour chart is a sign that a reversal is about to happen. It is also approaching the 14-day moving average while the accumulation and distribution has started to fall. The Stochastic oscillator has started to drop as well. Therefore, the pair may continue falling with the next target being 1.1850.
The GBP/USD declined to an intraday low of 1.3300 ahead of an important speech by Rishi Sunak. On the four-hour chart, the lowest point today was at the same level as the ascending yellow trendline. The pair’s upward trend is supported by the 25-day moving average. The awesome oscillator is also slightly above the neutral line. Therefore, the pair will remain in an uptrend so long as the price is above the ascending yellow trendline. A move below this line will possibly lead to a further decline to 1.3250.
The XBR/USD pair is trading at 48.05, which is slightly below yesterday’s high of 48.55. On the four-hour chart, the price is above the 14-day and 28-day moving averages while the RSI has moved above the overbought level at 70. The momentum oscillator has also continued to rise. Therefore, in the near term, the pair will likely continue rising as bulls target the next resistance at 50.