Source: ForexYard
Today will have a significant amount of data on the economic calendar. European PMI data will likely show the euro zone slipping towards a recession. The BoE meeting minutes could hint at additional easing of UK monetary policy. EU industrial data is expected to drop and will cap out the morning which is coming off of a volatile Asian trading session.
US data later today will have weekly unemployment claims and durable goods orders before the Thanksgiving holiday.
Earlier today the release of a surprise drop in the Chinese manufacturing PMI had risky assets trading sharply lower with the EUR/USD trading as low as 1.3440 and the AUD/USD down to 0.9760. A break of 1.3440 may open the door to the September low of 1.3360 and 0.9700 from the March low.
With increasing tensions in Europe and liquidity expected to fall off due to the holiday, volatility could begin to pick up in the FX markets. This could bring oversized moves in the markets, pushing the current trends even further.
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