Lack of Information Creating Small Movement On Forex Market

On the FX front, there was a very subdued tone with the main currency pairs spending the day in tight ranges. This reflects the lack of data/events over the past 24 hours, as well as the aforementioned holiday in the US.

As a result, the euro generally remained pinned down against the dollar and sterling. EUR/USD spent most of the day in a range just above the $1.06 level, though it did briefly test below it. EUR/GBP was confined to a 70.1-70.5p range. Meantime, cable (GBP/USD) spent most of the day trading around the $1.51 level. The pair opens this morning just below it.

Today, there is a busier schedule of releases. For sterling, the second reading of UK Q3 GDP (no revisions expected) provides a first look at the expenditure based breakdown of growth. Markets will analyse the data to see if growth is showing signs of becoming broader based.

In the Eurozone, a busy week of November survey releases comes to an end with the EC sentiment indices due. Given the upside surprises from the data earlier in the week, a similar result today cannot be ruled out. However, with the ECB meeting looming large, even a solid increase is unlikely to provide much support to the euro. In the US, the long Thanksgiving weekend continues.

A new role for Mario Draghi’s QE

A geopolitical risk are rising slightly between the West and the minority groups within the Middle East. Mario Draghi now could become a key figure determining how the markets react to geopolitical developments.

A recent survey by Bank of America found that geopolitical risk was the least worry factor. China and Emerging markets not being able to manage their debt piles were more worrying problems for the members surveyed. At the same you do have to remember that the people surveyed were more than likely money managers, which will always look for an opportunity to profit from any scenario. As a result, because the markets are larger and more connected than ever, there are numerous opportunities to profit from any circumstance.

Consumer confidence slumps

British consumer confidence slumped to +1 which is a huge dive from +7 in July. This is sparked by geopolitical concerns, a slowing China and problems for the emerging markets. A spokesman for Gfk stated that “confidence appears to be depressed by a combination of wider economic, political and social events”.

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