Global Markets: Thanksgiving week outlook


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Global markets seem to be set for another week of panic over the spreading coronavirus. Meanwhile, trading volume is likely to be light after Wednesday as U.S. stock markets will be closed on Thursday for Thanksgiving and open a half-day on Friday. The main event in the calendar for monetary policy this week is the meeting of the Reserve Bank of New Zealand on Wednesday. However, the latest updates from countries seriously affected by the coronavirus is likely to remain front and centre over the next few days.

On the earnings front, the companies due to release their results will be the China-based electric car maker XPeng (NYSE: XPEV), video conferencing company Zoom Video Communications (NASDAQ: ZM), and computer makers HP (NYSE: HPQ) and Dell ( NYSE: DELL) will be among those reporting earnings this week.


Gold’s losses against the dollar on Friday but the overall sentiment lacked any clear direction since the start of last week. While the overall momentum remained bullish throughout this month as investors bought it to hedge against rising inflation.

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This week, the key resistance for gold is located above $1870, a break above this level will confirm a possible move to $1878/90. On the downside, if the metal loses the $1732 handle, then we expect a move toward $1824/15.


The US dollar has made huge gains against most currencies last week driven by the worries about a slowing global economy. In addition to virus fears, demand for the US dollar remained supported by another increase in US inflation numbers.


This week, the first resistance is located for DXY around 96.40, a break above this level will confirm a possible move to 96.65/97.00. On the downside, any meaningful pullback now seems to find some support near the 95.50 zones, below which the slide could further get extended towards the 95.25/00 region.


The US Dollar is showed fractional gains against the eurozone currency as Investors are concerned by the escalation in the number of new cases across Europe. During the last week, the pair plunged to $1.1250, its lowest since June 2020.


Technically the current price action signals suggest that a long term bearish trend remains intact. For this week, the immediate support for the Euro stands near 1.1250 followed by 1.1210. On the flip side, the first resistance at 1.1330 any break above this level will open 1.1370/1.14 minimum.


Major stock indices and Dow jones continued to slide lower last week as the global trend as the risk-off mood dominates.


For this week, 35,500 remains the key support area to watch, any break below this level will open 35,300/180 minimum. On the upper side, If the index regains upside momentum and press back above 36,000 then the key resistance area to watch is 36,200/330.

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