Forex Today: Pressure on the US Dollar continues
|What you need to take care of on Tuesday, November 15:
The American Dollar enjoyed some temporal demand at the beginning of the week but quickly resumed its decline ahead of the US opening, ending the day near its recent lows against most major rivals. Market players saw the greenback’s near-term appreciation as an opportunity to sell it, reflecting that the tie has changed.
Global stocks struggled to extend last week’s rally, but most indexes posted gains, while US government bond yields ticked modestly higher.
Market players struggled to digest negative news coming from China, as the country keeps reporting record coronavirus contagions in Beijing and other big cities. The government has a zero-covid policy, which may lead to stricter lockdowns and the interruption of global shipments. The country will release some first-tier macroeconomic figures on Tuesday, which may lead the market’s sentiment, at least throughout the Asian session.
On the other hand, there are growing hopes tensions between Russia and Ukraine could soon ease after Moscow retreated and Ukrainian President Volodymyr Zelenskyy noted the country is ready for peace. However, the news should be taken with a pinch of salt, as it seems pretty unlikely Russia will back from the separatist regions.
Meanwhile, US President Joe Biden met his Chinese counterpart Xi Jinping during the G20 summit in Bali. The versions of the outcome differ according to national sources. On the one hand, US President Biden said they are not looking for conflict and will not be a new Cold War. On the other, Chinese media reported that President Xi warned his US counterpart about crossing a “red line” on Taiwan. Both Presidents said they wanted to find the right direction and manage their differences.
The EURUSD pair trades a few pips below Friday’s high at 1.0363 while GBPUSD battles to regain the 1.1800 level. The Australian Dollar reached a fresh November high in the 0.6720 area and is poised to extend its advance. The USDCAD pair, on the other hand, ticked north and trades around 1.3290 amid the poor performance of oil. Crude oil prices were sharply down amid Chinese news, with WTI trading at around $86.10 a barrel.
On the other hand, spot gold remained strong, with XAUUSD now hovering around $1,773 a troy ounce.
The USDJPY is up, a few pips below the 140.00 threshold, while USDCHF is down, hovering around 0.9410.
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