Forex Today: Due correction for the greenback around the corner
|What you need to know on Friday, November 12:
The dollar kept advancing in the absence of another catalyst that could diverge investors’ attention from skyrocketing inflation. Poor UK data fueled the ruling dismal mood, as the UK reported quarterly growth of 1.3% in the three months to September, much worse than the previous 5.5% and the expected 1.5%. Industrial Production, Business Investment and the country’s trade balance also missed expectations, hinting at a more conservative BOE and pushing GBP/USD to a fresh 2021 low of 1.3359.
The EUR/USD pair also fell to its lowest for this year, hitting 1.1445 and ending the day a handful of pips above it. In the case of the shared currency, the weight come from central banks imbalances, as while the Fed has already kick-started tightening and may have to accelerate its pace, the ECB maintains a conservative stance.
AUD/USD stands below 0.7300 following the release of dismal Australian data and the poor performance of equities. The USD/CAD pair flirts with the 1.2600 level, trading at a fresh one-month high.
Gold retained its strength, advancing for a sixth consecutive day. Spot trades above $1,860 a troy ounce and has room to extend its rally towards the 1,900 mark. Crude oil prices seesawed between gains and losses, with WTI ending the day little changed at $81.50 a barrel.
The USD is extremely overbought and may correct lower ahead of the weekend, although it would likely retain its strength.
The US celebrated a holiday with bonds markets closed. Wall Street was opened, with the DJIA falling deeply in the rest while other major indexes posted uneven gains.
Shiba Inu must hold key support to avoid total capitulation
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