Here is what you need to know on Thursday, November 28:
UK elections: YouGov's highly-anticipated MRP poll has shown a landslide 65-seat majority for Prime Minister Boris Johnson's Conservatives. GBP/USD has reacted positively and trades well above 1.29.
The US economy is doing well, according to data released ahead of the Thanksgiving holiday. Third-quarter Gross Domestic Product was upgraded to 2.1%, and Durable Goods Orders jumped in October, reflecting a rebound in investment. However, the Federal Reserve's preferred inflation gauge slipped to 1.6%.
Sino-American relations: The safe-haven yen regained some ground after President Donald Trump's signing into law of the Hong Kong bill that has angered China. Support for protesters in the city-state is seen by Beijing as an intervention in its internal affairs. However, trade talks continue.
AUD/USD has been on the back foot following Trump's signing of the HK bill and also due to accusations in the Australian media of Chinese spying which have been criticized by China. Moreover, Australian Private Capital Expenditure missed with a drop of 0.2% in the third quarter.
NZD/USD has weathered the storm after ANZ's Business Confidence measure recovered to -26.4 in November.
German preliminary inflation figures for November are due out today, shaping expectations for Friday's euro-zone numbers.
Several members of the European Central Bank have been supporting a review of the bank's monetary policy after Christine Lagarde took over as president.
Low liquidity is likely in the US session due to the holiday.
Cryptocurrencies have been extending their recovery with Bitcoin topping $7,500.
More Why is the US attempting to change China’s trade model?
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EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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