Here is what you need to know on Thursday, November 26:
The US dollar is on the back foot against major currencies and gold after the Fed showed more openness to expanding its bond-buying scheme, COVID-19 cases continue rising and a big bulk of data pointed to fresh weakness. The ECB Minutes stand out on Thanksgiving Day.
FOMC Meeting Minutes: The Federal Reserve dedicated a considerable amount of time in its recent meeting to discuss how its Quantitative Easing program could evolve. While the document showed no urge for imminent action, it seems the world’s central bank is readying action and that keeps the dollar on the back foot.
Data: Ahead of the Thanksgiving holiday, the US released a big bulk of economic figures. While some figures such as Durable Goods Orders beat expectations, the high-frequency jobless claims posted back-to-back increases for the first time since July. Concerns about a slowdown could prompt the Fed to act.
See US Thanksgiving Wrap: Consumers carry October, November starts to look dicey
US coronavirus infections, mortalities and hospitalizations have extending their worrying uptrend, with the latter hitting a daily record for the 16th consecutive day. The picture is mixed in Europe, where Germany continues struggling with a high caseload, while France is experiencing a decline.
The European Central Bank releases its meeting minutes later on Thursday, and they could further cement the signal to expand the bond-buying scheme in its December meeting. Italian policymakers have floated the idea of forgiving some of the debt.
Brexit talks have hit an impasse and European Commission President Ursula von der Leyen said she is unsure an agreement can be reached. It is unclear if Chief EU Negotiator Michel Barnier travels to London for further talks.
Gold has been able to stabilize and move away from the $1,800 level. WTI Crude Oil has consolidated its gains around $45.
Cryptocurrencies have suffered a significant downside correction, with Bitcoin losing the $18,000 level, Ethereum nearing $500 and XRP closing in on $0.50.
Trading volume is set to fall in US session due to the holiday.
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