Here is what you need to know on Wednesday, November 17:
The greenback continues to gather strength against its major rivals mid-week with the US Dollar Index climbing above 96.00 for the first time in 16 months. The upbeat Retail Sales data from the US and rising US Treasury bond yields on inflation fears helped the dollar outperform its rivals. Investors await October inflation data from the UK and the EU. Housing Starts and Building Permits from the US will be looked upon for fresh impetus in the second half of the day. Several FOMC policymakers will be delivering speeches during the American trading hours as well.
The benchmark 10-year US Treasury bond yield advanced to its highest level in three weeks at 1.65% earlier in the day and stays relatively quiet during the European trading hours. Wall STreet's main indexes posted modest daily gains and US stocks futures indexes are moving sideways.
St. Louis Fed President James Bullard called for the FOMC to turn "more hawkish" in the upcoming meetings, arguing that would smooth out the policy normalization process. On a dovish note, San Francisco Fed President Mary Daly said the Fed should stay patient when it comes to hiking its policy rate to battle high inflation.
EUR/USD fell below 1.1300 for the first time since July 2020 during the Asian session on Wednesday. Meanwhile, Germany suspended the approval of the Nord Stream 2 project and natural gas prices shot up in Europe, further weighing on the shared currency. Eurostat is expected to report that the Consumer Price Index (CPI) was up 4.1% on a yearly basis in October.
GBP/USD manages to hold above 1.3400 as investors await the UK CPI inflation data, which could ramp up the probability of the Bank of England hiking its policy rate by 20 basis points in December.
UK CPI Preview: Buy the rumour, sell the fact? Three scenarios for GBP/USD.
USD/JPY registered impressive gains on the back of rising US T-bond yields and broad dollar strength on Tuesday. Currently, the pair is trading at its strongest level since March 2017 and closing in on 115.00.
Gold reached fresh multi-month highs near $1,880 on Tuesday but lost its traction during the American trading hours. Since the hot CPI report from the US, gold had been capitalizing on inflation fears but the precious metal seems to be struggling to continue to find demand amid rising US T-bond yields. XAU/USD is currently fluctuating in a tight range above $1,850.
Cryptocurrencies: Bitcoin lost more than 5% on Tuesday and trades below the key $60,000 mark on Wednesday. India is reportedly looking to ban transactions in crypto and China renews efforts to clamp down on mining activities. Ethereum closed the fifth straight day in the negative territory on Tuesday and lost more than 10% during the period. ETH/USD is staying under bearish pressure on Wednesday and approaches $4,000.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD climbs back above 1.0750 ahead of ADP, Fed Minutes
EUR/USD has regained lost ground above 1.0750 in the European session on Wednesday. The pair draws support from the renewed US Dollar weakness, in the aftermath of the dovish Fed Chair Powell's comments. Eyes turn to US ADP data, Fed Minutes.
GBP/USD retakes 1.2700, looks to US data/Fed minutes
GBP/USD is battling 1.2700 in European trading on Wednesday, attempting a modest bounce. Traders appear reluctant and prefer to wait on the sidelines ahead of the FOMC minutes while the UK elections on Thursday also keep them on the edge. US ADP data eyed as well.
Gold jumps toward $2,350, with eyes on key US events
Gold price is closing in on $2,350 in the European trading hours on Wednesday, staging a rebound amid a fresh leg down in the US Dollar. Gold price capitalizes on dovish Fed Chair Powell's remarks on Tuesday, which added to the September rate cut expectations. US ADP data and Fed Minutes on tap.
Bitcoin struggles around $64,000 level
Bitcoin faces resistance near the $64,000 daily level, leading to a 1.05% decline in trading on Wednesday. Ethereum and Ripple similarly encounter resistance, resulting in 1% and 0.5% declines, respectively.
ADP Employment Change Preview: US private sector expected to add 160K new jobs in June
The United States ADP Research Institute will release its monthly report on private sector job creation for June. The announcement is expected to show that the country’s private sector added 160K new positions in June after adding 152K in May.