Thanksgiving this Thursday, with major economic indicators scheduled to be released on Wednesday, likely to set the tone for several major currencies for the weeks ahead

Highlights:
1. U.S. Thanksgiving holiday on Thursday, with major economic indicators (Q3 GDP, new home sales, etc.) releasing on Wednesday
2. U.S. growth uncertainty, COVID cases, and global lockdowns may keep USD/JPY lower due to the anti-risk nature
3. GBP outlook mired as Brexit approaching the endgame, amid COVID additional waves

Global equity markets have experienced several struggles over the past week for some limited meaningful upward momentum, although positive vaccine news kept coming out from Moderna and Pfizer, who officially filed its vaccine for emergency use pending FDA authorization. The good news failed to pass on its full impact to the currency side, as USD lost ground to most major currencies due to the declines from longer-dated Treasury yields, signaling fading confidence in the mid to long-term outlook.

In the U.S., the Thanksgiving holiday is approaching and the market will be closed full-day on Thursday and half-day on Friday. Thus, most major economic indicators, including Q3 GDP, will be released on Wednesday. This will likely have several meaningful impact on the currency market at least for some weeks ahead, pushing the anti-risk Japanese Yen once again to be in an optimal position.

Meanwhile in Europe, Brexit is approaching its endgame. GBP has been rising cautiously, and Sterling will likely remain rangebound until the deadline hitting in by the end of the year. However, COVID is starting to add some uncertainty to this EU/UK stalemate, as one of the negotiating team has been tested positive last Thursday, forcing the chief negotiator to self-isolate and delay the talks further.