The US markets were closed on Thursday on account of the Thanksgiving holiday. Investors were cautious amid the lack of any major fundamentals during the day. Doubts on the US and China trade deal still remain. This comes as the Washington administration passed a bill in support of the Hong Kong protests. Chinese authorities are reportedly not happy with the US decision. Investors fear that this could spill over into the trade talks.
German Consumer Prices Fall More than Expected
The monthly consumer price index data for Germany showed that inflation was weaker in November. Headline CPI for Germany was down 0.8% on the month in November. This was more than the forecasts of a 0.5% decline estimates given by economists. On a year over year basis, German CPI is up 1.1% however but below the median estimates of a 1.3% increase. Lower energy prices were attributed to the weakness in the headline inflation.
EURUSD Holds on to Support Firmly
The common currency recovered from the slump on Wednesday, but price action is still near the support level of the 1.1000 region. With the US markets partly open today, we could expect to see a flat close into the weekend. The prospects of a rebound come into the picture only when EURUSD can breakout above the local pivot high of 1.1020.
Sterling Trades Flat as Tories Lead in UK Poll
The incumbent Prime Minister Johnson’s Conservative Party is expected to win with a majority in the upcoming December 12th elections. The UK poll puts the Tories as the firm favorites despite the Labor party trailing closely. The sterling which fell earlier this week on news about the Labor party gaining ground erased the losses.
GBPUSD Back Within the Range
The currency pair is back trading within the range of 1.2960–1.2865. This sideways range could continue into the December 12th elections. So far, the upper range of 1.2960 has held up. So further gains can be expected only on a strong close above this level. To the downside as well, unless the declines are followed up by strong momentum, price action could remain muted.
Gold Prices Stay Muted Despite Modest Risk Aversion
The precious metal attempted to make some modest gains during the European trading session. But by the US session, the precious metal gave back the gains. With thin trading, gold prices were somewhat limited in their range. The US markets open today but it is a short trading day for the US ahead of the weekend.
XAUUSD Trending Weaker
XAUUSD has been somewhat subdued but the bias remains to the downside. With price action within the range of 1462 and 1445 levels, the sideways range could remain in play. The bias can shift to the upside on a break out above 1462. However, the Stochastics oscillator is indicating to continued bearish momentum.