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Markets factor in ECB policy meeting
The Eurozone grapples with recession woes
European stocks remained unchanged, influenced by the Thanksgiving holiday and thin trading
The Australian dollar saw a slight increase against the US dollar for the second consecutive session, marking its second consecutive week in positive territory.
The US dollar maintained a sideways trading range near 103.6, with market uncertainty regarding potential rate cuts next year.
On the Market Watch!
European stocks
European stocks were little changed today impacted by thanksgiving holiday's thin trading, Germany’s DAX was last seen near 16,007 continuing its upward trajectory. Whilst the UT100 was flat near 15,983, on its way for the 4th consecutive week of gains.
Markets are currently factoring in the potential for a mild recession in the Eurozone after data indicated that the Eurozone economy is still contracting with most of the impact of past hiking yet to materialize.
The European Central Bank made the decision to halt its pattern of 10 consecutive rate hikes, responding to the softer economic data and the general weakness observed in the overall economy.
And overnight, In the ECB's account of the October policy meeting, officials acknowledged increased economic uncertainty noted in September. This heightened uncertainty has created additional space for potential future rate hikes, even though such hikes are not currently included in the baseline scenario. The officials' assessment reflects a cautious approach to monetary policy, recognizing the evolving economic conditions and leaving room for adjustments in the future.
AUD/USD
The Australian dollar saw an uptick against the dollar today for the second consecutive session to mark its second week in the green. Despite Australia’s PMI’s signally potential economic challenges on the horizon as the Judo bank manufacturing PMI hits a multi-year low at 47.7 vs 48.2 previous.
Meanwhile the dollar stuck to its side-way trading range near 103.6, up from this week low near 103.18. with the outlook quite uncertain as markets price in the beginning of rate cuts next year.
