With European Central Bank policymakers, in particular President Mario Draghi, paving the way for dovish action at their meeting on December, the Euro took another hit across the board last week. EUR/USD, after briefly flirting with a move towards 1.02€, closed the week at 1€. Markets are have been pricing in the events at the end of the first week of December, and for good reason: the ECB has its last policy meeting of 2015; Federal Reserve Chair Janet Yellen gives testimony in front of Congress; and the November US Nonfarm Payrolls report will be released.
Before then, we have an abnormal week ahead of us, with the US Thanksgiving Day holiday on Thursday, shuttering US bond and equities markets and leaving markets lacking liquidity all the while. In recent years, as is typical, the low liquidity conditions have led to sporadic price movements. These choppy conditions can prove to be a difficult environment to trade in. As such, especially given the expectations for the first week of December around the EUR-crosses.