US Dollar Slides on Thanksgiving as PMIs Diverge, Technical Breakdown Looms
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The US Dollar is drifting lower on Thursday with US markets closed for the Thanksgiving holiday. The US Dollar Index has erased previous gains and may end the week down.
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European Purchasing Managers' Index (PMI) numbers for November showed an improvement from October, contrasting with declining US PMIs. This divergence may weigh further on the US Dollar.
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Markets are subdued with light economic data today. Key highlights include a ceasefire deal postponed in Gaza, a car explosion at the US-Canada border deemed an accident, and a bounce in Chinese property stocks.
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Technical analysis suggests the US Dollar Index needs to close firmly above the 200-day moving average near 103.62 to stop its slide. Next key levels are the 100-day SMA around 104.20 and 55-day SMA near 105.71.
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With slim catalysts today, the US Dollar risks further declines. Losses may accelerate if the 200-day moving average near 103.62 fails to hold up.