Wall Street Rebounds, but European Morale Stays Subdued

Most European Indices Continued to Slide, Wall Street Trades in the Green

The US dollar continued to drift north against most of the other major currencies on Wednesday and during the Asian session Thursday. It underperformed only versus CAD, while it was found virtually unchanged against CHF. The greenback gained the most versus NZD and JPY.

Euro Stoxx 50 — Technical Outlook

The Euro Stoxx 50 cash index traded lower yesterday but hit support at 4240 and later in the day, it rebounded. Overall the index has been in a sliding mode since November 18th, when it hit resistance at 4415, while the next day, it fell below the upside support line drawn from the low of October 6th. With that in mind, we will consider the short-term outlook to be negative.

EUR/GBP — Technical Outlook

EUR/GBP has been trading in a sideways manner since November 17th, between the 0.8380 and 0.8430 barriers. However, bearing in mind the fundamentals, as well as that the prevailing longer-term path has been to the downside, we would see more chances for the rate to exit the range to the downside rather than to the upside.

As for the Rest of Today’s Events

Besides the ECB minutes and the speeches from ECB President Lagarde and BoE Governor Bailey, we will also get to hear from ECB’s Elderson and Schnabel, as well as by BoE MPC member Haskel. Otherwise, the calendar is very light, with Wall Street set to stay closed in celebration of the Thanksgiving Day.

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