Here is what you need to know on Tuesday, November 30:
With trading volumes returning to normal levels following the Thanksgiving break, the dollar gathered strength during the American trading hours on Monday but the sharp decline witnessed in the US Treasury bond yields caused the currency to lose interest. November (preliminary) Consumer Price Index (CPI) data from the euro area will be looked upon for fresh impetus ahead of the Conference Board's November Consumer Confidence Index data from the US. FOMC Chairman Jerome Powell will be testifying before the US Senate Committee on Banking, Housing, and Urban Affairs on coronavirus and CARES Act.
In his prepared opening testimony, Powell will say that factors pushing inflation upward are expected to linger "well into next year." Regarding the Omicron variant, Powell will acknowledge that the new variant is posing downside risks to employment and economic growth while increasing the uncertainty surrounding inflation.
The benchmark 10-year US Treasury bond yield is currently losing more than 2% on the day at 1.46% and US stock index futures trade in the negative territory, suggesting that markets have turned risk-averse in the early European session on Tuesday. Several reports are suggesting that current vaccines are likely to be ineffective against the new coronavirus variant and investors are concerned about a slowdown in global economic activity.
EUR/USD is edging higher in the early European trading hours on Tuesday and holding above 1.1300. Eurostat is expected to report that the Consumer Price Index in the euro area declined to 3.7% on a yearly basis in November from 4.1% in October.
GBP/USD clings to modest recovery gains above 1.3300. There won't be any high-tier macroeconomic data releases from the UK and the dollar's valuation is likely to continue to drive the pair's action.
USD/CAD continues to push higher as the commodity-sensitive loonie weakens amid falling crude oil prices. Ahead of September Gross Domestic Product data from Canada, the pair is trading at its strongest level since late September near 1.2800. In the meantime, the barrel of West Texas Intermediate is trading below $68 for the first time since September 10.
USD/JPY turned south and is currently testing the 113.00 support area after failing to climb above 114.00. Falling US T-bond yields continue to weigh on the pair.
Gold is having a difficult time rising above $1,800 but the yellow metal's losses remain limited amid renewed dollar weakness.
Cryptocurrencies: Following a three-day rebound, Bitcoin is edging lower and trading below $57,000. Ethereum seems to have gone into a consolidation phase below $4,500.
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 struggles to hold above 1.0400 as mood sours
EUR/USD stays on the back foot and trades near 1.0400 following the earlier recovery attempt. The holiday mood kicked in, keeping action limited across the FX board, while a cautious risk mood helped the US Dollar hold its ground and forced the pair to stretch lower.
GBP/USD approaches 1.2500 on renewed USD strength
GBP/USD loses its traction and trades near 1.2500 in the second half of the day on Monday. The US Dollar (USD) benefits from safe-haven flows and weighs on the pair as trading conditions remain thin heading into the Christmas holiday.
Gold hovers around $2,610 in quiet pre-holiday trading
Gold struggles to build on Friday's gains and trades modestly lower on the day near $2,620. The benchmark 10-year US Treasury bond yield edges slightly higher above 4.5%, making it difficult for XAU/USD to gather bullish momentum.
Bitcoin fails to recover as Metaplanet buys the dip
Bitcoin hovers around $95,000 on Monday after losing the progress made during Friday’s relief rally. The largest cryptocurrency hit a new all-time high at $108,353 on Tuesday but this was followed by a steep correction after the US Fed signaled fewer interest-rate cuts than previously anticipated for 2025.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.