Market overview: USD strength remains the key theme - ANZ

Analysts at ANZ noted that with US markets closed for the Thanksgiving Day holiday, trading activity was subdued following the sharp moves on Wednesday. 

Key Quotes:

"USD strength remains the key theme in currency markets, with USD/JPY reaching around 113.50 and ECB Vice President Constancio’s implicit endorsement of a weaker EUR (see here). 

Kiwi is holding around 0.70, but looks set to trend gradually lower as markets focus on the implications of potential US trade barriers and rapid upward re-rating of US growth prospects. 

However, with the USD gaining against most other countries, the TWI is only ~2% off its highs, capping any prospect of an immediate lift in inflation or removal of the RBNZ’s easing bias. The US bond market was closed, and European bond yields traded tight ranges. US equity markets were also closed, but European bourses were mildly higher."