Forex Today: Dollar corrects lower in a slow start to the week


What you need to know on Tuesday, November 9:

The greenback gave up some ground on a quiet Monday. The week started with China reporting a record Trade Balance surplus, although imports increased by less than anticipated, with notable declines in oil and soya beans buying.  

Several US Federal Reserve policymakers give speeches within different events, although references to monetary policy were scarce. Vice-Chair Richard Clarida said that benchmarks for rate hikes could be met by the end of 2022 but added that the Fed is still "a ways away" from considering lift-off, adding that he expects a full return to pre-pandemic employment levels by the end of 2022.

More relevant is the fact that Fed’s Randal Quarles said he is stepping down from his post around the end of the year. Vice-Chair Richard Clarida leaves in January, while Powell’s term ends in February.  A Fed’s reshuffle could bring some interesting changes next year.

The EUR/USD pair neared 1.1600, but held below the level, while GBP/USD recovered to the 1.3550 price zone. Commodity-linked currencies were marginally higher, with AUD/USD trading around 0.7420 and USD/CAD in the 1.2440 price zone. The USD/JPY pair is under selling pressure despite the better tone of Wall Street, down to the 113.20 region.

US government bond yields ticked higher with that on the 10-year Treasury note flirting with 1.50% by the end of the American session.

Gold was among the best performers, surging to a fresh one-month high of $1,826.43 a troy ounce, ending the day nearby. Crude oil prices edged lower at the beginning of the day, recovering most of the ground lost ahead of the close. WTI settled at $82.10 a barrel.

Bitcoin shoots past Tesla and Facebook to become world's sixth-largest asset

 


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