And with Treasuries out especially, that’s not going to give too much for traders to work with in the sessions to come. US stocks ended the day higher yesterday but we could get more tepid trading on Friday as highlighted here yesterday. But keep in mind that the momentum right now is rather positive for equities.
In FX, the dollar is a little on the softer side after slight gains in the day before. It’s not really hinting at much in the bigger picture, with the greenback still keeping in a vulnerable spot. USD/JPY is down 0.3% to 149.15 after a decent bounce yesterday while AUD/USD is up 0.2% to 0.6555 after holding at its 100-hour moving average – now seen at 0.6540. For the latter, the 200-day moving average at 0.6585 remains the key resistance level to watch for now.
The most interesting story so far today would be the mystery pneumonia outbreak in China as seen here. It doesn’t have the same Covid vibes to it but considering how quickly so many children have been infected, it is one to keep an eye out for. I would argue that as long as it is any infection that is not as deadly or impactful, it isn’t going to matter much considering how much post-Covid angst is still out there across the globe.
And no, we’re never going to return to a world of lockdowns in every city and every country. Not unless there is a real zombie apocalypse in the making maybe.
Anyway, the Thanksgiving holiday will overshadow everything about markets in the day ahead. And the festive and slow mood is also likely to carry over to tomorrow at least. That will keep the overall mood more dull before we get stuck into month-end trading next week.