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The U.S. dollar traded overall weaker against other major and also many emerging market currencies with pairs like the USD/MXN and USD/ZAR trading lower.
The Turkish lira (TRY) is continuing to appreciate following the announcements made earlier this week by the country’s President, meant to reassure both investors and local companies. By Thursday morning the USD/TRY pair was trading almost 29% lower compared to the closing rate on Friday. Since the beginning of November the USD/TRY rate is however still up by 23% even after this steep drop experienced over the course of this week.
In the crypto markets the sentiment was a bit mixed with major coins like Bitcoin reversing lower below $49k and Ethereum falling below $4k, while solid gains were observed among some other altcoins like Cardano and Ripple. Total crypto market cap hovered still around the $2.4 trillion mark.
Major stock market indices around the globe traded overwhelmingly higher with even markets like the Japan 225 and China A50 turning eventually to the upside, while the Volatility Index VIX continued moving lower from the recent high.
Thursday as the last full trading day before the Christmas Holidays is set to include a number of important fundamental data releases especially from the U.S. where monthly data on personal income, consumer spending, the core PCE price index, durable goods orders and new home sales can be expected.
As the greenback weakened the EUR/USD pair was once again trading higher, while by Thursday morning the positive sentiment continued to push the rate higher for the fourth trading day in a row and by that time recovering completely from the drop of last Friday.
Rising rates of inflation are still seen across many countries’ producer price indices (PPI) such as for the French PPI or November which indicated a year-on-year growth of 17.4%. German data on import and export prices indicated that there the inflation was especially driven by higher import prices, which rose by 24.7% compared to November 2020, while export prices were up by 9.9%.
On Thursday Spanish GDP data and Italian business confidence indicators can be expected.
After a weak start into the week, gold prices surged higher on Wednesday surpassing the $1,800 threshold in the spot markets, while other precious metals like silver and palladium started rising even on Monday while gold prices were still under pressure. Platinum prices were meanwhile also up by more than four per cent compared to the closing rates on Friday.
The rise in dollar-denominated gold prices could be attributed at least partially to the weakness of the dollar as Gold (EUR) CFDs were by Thursday morning down by around 0.1% since Friday, while Gold in USD was up by a bit more than 0.5%.
Oil settled clearly higher for the second day in a row, recovering strongly after a weak start into this week and clearly on track to end this current week in the green.
Prices were relatively steady at the time of the weekly stockpiles announcement by the Energy Information Administration (EIA), whose numbers shows another draw from crude oil inventories of 4.7 million barrels. However, at the same time gasoline inventories increased by 5.5 million barrels.
The weekly U.S. Baker Hughes Oil Rig Count can be expected this week on Thursday. While there has been a steady recovery over the past months in terms of operating oil rigs, the total number is still far below the levels before the pandemic as last week 475 oil rigs were reported in operation and at the end of 2019 the number stood at 677.
Major stock market indices like the US 500 closed clearly higher for the second trading day in a row on Wednesday with market starting to move higher around the time the U.S. trading session started. The real GDP for the third quarter was revised upwards to 2.3% growth, while consumer confidence as published by the Conference Board improved from 109.5 to 115.8.
Moderna (-6.33%) stocks once again underperformed trading lower for the third day in a row this week, while other companies involved in the COVID vaccine business like BioNTech (-4.23%) and Novavax (-4.23%) also traded lower. Overall the biotech sector (US Biotech ETF -0.12%) was one of the few underperforming in the market clearly in recovery mode.
Tesla (+7.61%) was by far the best-performing component of both the S&P 500 and NASDAQ Composite Indices on Wednesday, with the stock price rapidly recovering to levels seen around two weeks ago. A key factor could have been the statement from the company’s CEO that he is almost done selling the company’s stocks, which amounted to more than 13 million shares sold over the past month.
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