Societe Generale Research expects a choppy price action in the near-term:
"Thanksgiving and the World Cup are removing both liquidity and energy from markets this week. In FX, Tuesday is the mirror image of Monday, the Dollar falling against all the other G10 currencies today, having gone up against all of them yesterday. Overall, the dollar’s turning, equity markets are trying to find a base, even if that’s temporary, and bond yields overall are close to their peaks, if not already there," SocGen notes.
"The huge elephant in the room – that a prolonged European gas shortage slows growth and raises inflation far more in Europe than it does in other areas (particularly the US), is just one reason why the euro’s revival (and the dollar’s turn lower) won’t be in a straight line. But we’ll take the positive of an improving balance of payment as what it is – good news at the margin," SocGen adds.