Forex Signals Brief for Nov 26: ECB in Focus

US Market Wrap

Markets and risk assets were a little muted to end the session as US traders started looking to the Thanksgiving break.

Most asset classes were quiet and even the slew of economic data didn’t make a big impact. We did see US jobless claims remain elevated about that 700K level, while GDP was broadly in line with expectations.

The Data Agenda

With the US taking a well-earned break, most of the attention today is on what is going on in Europe.

We will be hearing from the ECB with their latest details of monetary policy and clearly, the EUR/USD could be a busy trade.

We should expect the outlook to remain weak given ongoing restrictions that are in place and the ECB will be forced to continue to stimulate the economy as best it can. The reality is that they don’t have that many options left so we will be interested to hear what could be in store. Further bond buying is a likely option and we’ve even heard talk of adjusting inflation expectations even lower.

Aside from the ECB, it is expected to be a quiet-ish day, so there will be plenty of attention on any changes of policy and the outlook.

Forex Signal Update

The FX Leaders Team finished with 2 wins from 2 trades as volatility fell away with risk assets relatively flat.

LTC – Active Signal 

LTC fell away yesterday along with the entire space and will now be seeking out some support.

DAX – Pending Signal 

The DAX is still holding up really nicely and is above that key resistance level. That’s a good sign, given other risk assets were weak, however, the ECB will be important today.

Cryptocurrency Update

BTC started topping out a bit yesterday around the $19,500 level and has made a bit of a double top.

While the record highs are still in sight, I suspect we might see a little bit of a pullback prior to another run.