USD Market Shares Rally Into Thanksgiving Holiday

saw market shares rally into the Thanksgiving holiday, prompting risk sentiment to improve on a number of currencies following an earlier dour trading outlook. With reports emanating from Cairo that Palestine and Israel had reached a cease fire, markets had a second leg up heading into the long weekend. US Share markets posted modest gains with Dow ending 0.4% higher and S&P up 0.2% in the last hour of trade.

The Euro (EUR) was sold heading into the EU session of trading, with reports that no agreement on Greece had been reached, thus being re-scheduled for Monday the 26th of November. As such, the single currency crashed back below key 1.2800 levels, to trade as low as 1.2737, before reassurance made by German Chancellor Merkel echoed confidence that an agreement to grant Greece bail-out funds would be reached, ensuring the euro paired back all its losses, and pushed on higher following US session rally to end the trading day above 1.2850.

The Japanese Yen (JPY) saw the EUR/JPY post levels above 126.00 for the first time in almost 7 months. Many cross currencies managed to rally against the yen as optimism continued to spur buying frenzy.

Australian Dollar (AUD) was less buoyant than most other majors in light of growing optimism, despite its perceived role as a favoured risk yielding currency. RBA minutes released earlier in the week highlighting the possibility of a rate cut in coming months, added to the short lived euphoria of IMF categorizing the AUD as a global reserve currency on Monday, the AUD failed to track the sharp shift upward, with a slow grind higher from levels near 1.0335 toward 1.0380 in early Asia (Thursday).

Oil and Gold (XAU) Gold managed to rally $4.60 in London to trade as high as high as $1732.10, but ended off highs as Egypt brokered a ceasefire between Israel and Hamas, to end the day near $1728.20. In similar fashion, Crude Oil managed to rally but failed to hold on those gains following the cease fire, ending the day at $87.38