Global Markets Eye Rate Shifts Amid U.S. Thanksgiving

As the U.S. enters a Thanksgiving lull, global markets anticipate interest rate shifts. With the dollar declining, South Korea shifts towards a hawkish stance, impacting bonds. Key updates include ECB minutes, European confidence data, and currency movements, with the U.S., Japan, and New Zealand at the forefront.

As the U.S. markets take a breather with the Thanksgiving holiday, global investors are keenly watching interest rate trends. The dollar is on track for its largest weekly decline in four months, prompting focus on future monetary policies through 2026.

South Korea joins the global move towards a hawkish stance, affecting bond markets, while the Bank of Japan's Asahi Noguchi suggests gradual interest rate hikes. Similarly, the Reserve Bank of New Zealand concludes its rate cut cycle, spurring a rise in the kiwi dollar.

The ECB minutes are anticipated to shed light on policymakers' stance as European consumer confidence data awaits. Meanwhile, the potential for a Ukraine peace deal looms, affecting commodity markets. Despite higher rates in New Zealand and Japan, the U.S. sees a 1% decrease in the dollar index from recent highs, while traders eye the Australian dollar for potential growth.

(With inputs from agencies.)