Thanksgiving Thursday Brings Muted Market Activity

Hello traders, and welcome to Thursday’s session. Typically, Thursdays are among the busiest and most volatile trading days of the week, but with today being Thanksgiving in the U.S., market activity is expected to taper off significantly, particularly after the London session closes.

The day has already seen the release of Spanish flash CPI, which came in slightly higher than expected, reflecting some resilience in inflation trends. Later, the focus will shift to German prelim CPI, forecasted at -0.2%. This release will be pivotal for the euro, which is currently under pressure. Traders will be watching closely to see if the data provides any relief for the struggling currency.

The European session began on a positive note, with indices flashing green. Yesterday’s trading saw a drop across major indices, but during the Asian session, a recovery helped to stabilize the sentiment. Despite this optimism, volatility remains subdued, reflecting the holiday atmosphere.

In the commodities market, gold is staging a notable recovery after yesterday’s drop during the American session. The precious metal has seen eight consecutive bullish hourly candles, marking a significant upswing. This suggests strong demand as traders look to hedge against broader uncertainties.

On the other hand, oil continues to struggle. The commodity is on the red side of the market, unable to find traction amid a generally subdued trading environment.

The currency market sees strength in the Canadian dollar, American dollar, Australian dollar, and New Zealand dollar—the “dollars” are firmly in control. Meanwhile, European currencies, including the euro, along with the Japanese yen, remain under pressure. Traders are particularly watching the euro, hoping that the German inflation data might provide some relief.

As the day progresses, all eyes will be on the German CPI to see if it can bolster the euro. However, given the Thanksgiving holiday, expect muted activity and lower liquidity, especially after the London session. This calm period may offer a chance for markets to consolidate ahead of busier trading days next week.

Source: https://www.axiory.com/analytics/market-news/thanksgiving-thursday-brings-muted-market-activity