Details Cookies
Cookie Policy

This website uses cookies to offer you a better browsing experience by enabling, optimising and analysing site operations, as well as to provide personalised ad content and allow you to connect to social media. By choosing “Accept all” you consent to the use of cookies and the related processing of personal data. Select “Manage consent” to manage your consent preferences. You can change your preferences or retract your consent at any time via the cookie policy page. Please view our cookie policy here and our privacy policy here

background image background image background image

NY Open: Pre-Thanksgiving profit-taking sinks greenback

Forex 4 minutes to read
Michael O’Neill

FX Trader,

Summary:  Market sentiment is on the shaky side as US markets open, with flagging trade deal optimism, a dovish Fed and some profit-taking all taking their toll.

The US was wobbly at the open, and then a combination of dovish Fed speak, fading optimism for a US/China trade deal, a lull in UK political drama and penchant to lock in some gains ahead of next week’s holiday led to USD selling across the board.

The Australian dollar and New Zealand dollars are the best performing G-10 major currencies, rising 0.78% since the open. EURUSD is close behind with a 0.67% gain.

Fed Vice Chair Richard Clarida help to fuel dollar selling when he said that Fed funds is getting closer to a “neutral level.”   US 10-year treasury yields stayed soft, and USDJPY dropped from 113.25 at the open to 1132.72 as of 14:00 GMT. A break below 112.60 could extend losses to 112.05.

Wall Street trimmed opening losses and is mixed to flat as of 14:00 GMT. The DJIA is unchanged while the S&P 500 and Nasdaq are a tad lower. Pre-Thanksgiving profit taking could lead to another positive close today.

There will not be a shortage of drama or market volatility next week, but there will be a shortage of Americans.  Thursday, November 22 is Thanksgiving in the USA, and for them, it is a big deal. Many workers take the entire week off if they can. 

Usually, when the US is closed, it puts a damper on global FX trading. That might not be the case this year, thanks to the UK political theatre and the EU/Italy brinkmanship. UK Prime Minister Theresa May could face a no-confidence vote next week if the 21 MPs who say they have demanded a vote can get another 27 MPs to follow suit. 

Italy has not wavered from plans for a budget deficit of 2.4% of GDP, and the EU is threatening penalties. 
Italian Deputy Premier Matteo Salvini said his country wouldn’t accept them. Thinner than usual FX liquidity suggests surprises could exaggerate price moves.

Next Friday could be choppy.  That’s the day when President Trump and China President Xi Jinping are supposed to meet in Argentina. It is also month end for portfolio managers.
USDJPY, hourly. Source: Saxo Bank

Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (
- Analysis Disclaimer (
- Notification on Non-Independent Investment Research (

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000

Contact Saxo

Select region


The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.