Market hopes were dealt a bit of a setback as negative COVID-19 developments in China is weighing on the mood today, keeping equities slightly on the backfoot. In turn, the dollar is out ahead as the lead gainer among major currencies as it seeks to build on the recent recovery momentum from the latter stages of last week:
- Dollar technicals still sorting its feet out for now
- USD/JPY moves higher as dollar sentiment continues to recover
- Dollar on the mend in European morning trade
- The tide is turning back in favour of the dollar again
It is still early in the week and markets are still finding its feet but bear in mind that trading interest this week will be cut short amid the Thanksgiving holiday on Thursday.
For equities, the S&P 500 index remains a key chart in dictating what might come next. It is either we get a firm break above 4,000 and the 61.8 Fib retracement level or a drop back below the 100-day moving average (red line):
