USD Trading: Thanksgiving Week Brings Limited Liquidity & Key US Data

USD pairs face a holiday-shortened trading week with Thanksgiving on Thursday, resulting in reduced market liquidity and potentially increased volatility. The week features important US economic releases including Producer Price Index (PPI), retail sales, and durable goods orders for September, delayed due to the recent government shutdown. While these backward-looking indicators may have limited immediate impact, they remain crucial for building a comprehensive economic picture ahead of the Federal Reserve's December meeting. Traders should expect thin trading conditions, particularly during Wednesday's afternoon session and throughout Thursday. The holiday period typically sees institutional traders reducing positions, which can lead to unexpected price movements on lower volume. Key USD pairs like EUR/USD and USD/JPY may experience wider spreads and choppy price action. Market participants are advised to adjust position sizes accordingly and maintain tighter risk management protocols during this abbreviated trading week.