Forex Today: Dollar benefits from risk-off mood
|What you need to know on Wednesday, November 10:
The greenback maintained its tepid tone during the Asian session but became more attractive during US trading hours. The catalyst for the dollar’s demand was another sign of inflationary pressures spurring risk-off. Wall Street edged lower after its overseas counterparts posted intraday gains, following the release of the US Producer Price Index, confirmed at 8.6% YoY in October.
The EUR/USD pair tried to advance past 1.1600 a couple of times but was rejected by persistently strong selling interest. European Central Bank policymakers commented on the future of the monetary policy. Klaas Knot said that conditions for a rate hike are very unlikely to be met in 2022, while top supervisor Andrea Enria said low ECB interest rates are now hurting bank margins more than they are boosting lending volumes. The European Central Bank maintains a wait-and-see stance, considering higher prices will be temporary.
The GBP/USD pair hovers around 1.3550 after a failed attempt to recover above 1.3600. Irish foreign minister Simon Coveney said that if the UK triggers Article 16 over Northern Ireland would prompt retaliatory action on Sunday, adding on Tuesday that it would trigger a “very robust response” from the EU.
Commodity-linked currencies fell alongside Wall Street. AUD/USD trades in the 0.7370 price zone, although the USD/CAD pair eased from its intraday high amid rallying oil prices.
The EIA cut its 2022 forecast of world oil demand by 130,000 barrels per day, raising this year forecast for oil demand by 60,000 barrels per day.
Gold trades at fresh one-month highs around $1,830 a troy ounce amid the dismal market’s mood. Government bond yields, however, edged lower with that on the 10-year US Treasury yield currently at 1.44%.
The US will publish the October Price Index on Wednesday, foreseen at 5.3% YoY.
Top 3 Bitcoin, Ethereum, XRP: Cryptos make all-time highs while investors realize profits
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.