What you need to take care of on Tuesday, November 22:
The American Dollar edged higher on Monday, helped by a negative shift in the market’s sentiment. Risk aversion dominated financial markets after China’s National Health Commission reported two deaths of Covid-19 patients in Beijing, while the country reported over 26,000 new contagions on Sunday. Stay-at-home orders were issued in different regions, spurring concerns about a potential global economic setback amid the country’s strict covid policy.
The EUR/USD pair trades not far above a daily low of 1.0222, while GBP/USD barely holds above the 1.1800 figure. Germany published the October Producer Price Index (PPI), which unexpectedly contracted by 4.2% MoM. The annual figure was up by 34.5%, well below the previous 45.8%. It is the first sign of easing inflation in the EU.
European Central Bank (ECB) Executive Board member Philp Lane was on the wires and said that any recession in the Union would be mild and short-lived. He also noted that the ECB would hike rates again in December, progressing towards the levels needed. Government Council member Robert Holzmann said if the current situation persists, they will go for a 75 bps hike in December. Finally, ECB policymaker Mario Centeno noted that many conditions exist for rate increases to be less than 75 basis points in December.
Commodity-linked currencies ended the day with losses against the greenback. The AUD/USD pair trades around 0.6600, while USD/CADstands at 1.3440, down from an intraday high of 1.3416.
The Japanese yen was among the weakest US Dollar rivals, ending the day at around 142.05. In the meantime, the USD/CHF pair recovered to the 0.9590 price zone.
Gold fell for a fourth consecutive day, settling at around $1,738 a troy ounce. Crude oil prices, on the other hand, plunged ahead of the US opening amid market talks suggesting some OPEC members were considering a production increase of up to 500,00 barrels per day. The news was later denied by the Saudi Energy Minister, who said the current OPEC+ deal would continue until the end of 2023. Crude oi prices trimmed early losses and finished the day pretty much unchanged, with WTI now trading at $80 a barrel.
The week will be mostly light regarding macroeconomic releases, focusing on the FOMC Meeting Minutes to be out on Wednesday.
Like this article? Help us with some feedback by answering this survey:
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
AUD/USD extends gains above 0.6500 after hawkish RBA Minutes
AUD/USD gathers upside momentum above 0.6500 in Tuesday's Asian trading. The pair draws some support from the hawkish RBA Minutes, a softer US Dollar and China's stimulus hopes. The focus now shifts to mid-tier US data and Fedspeak.
USD/JPY pulls back sharply to 154.00 amid looming Japanese intervention risks
USD/JPY is testing bids just above 154.00 in the Asian session on Tuesday after facing rejection at 154.70. There are no catalysts seen behind the latest leg down but looming Japanese internetion remains a risk to the pair's upside. The pair seems to have surrendered to some technical selling.
Gold climbs to one-week top on softer US bond yields, geopolitical tensions
Gold price (XAU/USD) attracted some haven flows after posting its steepest weekly drop in more than three years last week and snapped a six-day losing streak on Monday amid heightened geopolitical tensions.
Bitcoin could see another parabolic run following rising institutional interest
Bitcoin (BTC) began the week positively, rising over 3% above the $91K threshold on Monday. Despite the recent rise, BTC could begin another extended bullish move as top firms are increasing their Bitcoin holdings and potentially adopting it as a reserve asset.
The week ahead: Powell stumps the US stock rally as Bitcoin surges, as we wait Nvidia earnings, UK CPI
The mood music is shifting for the Trump trade. Stocks fell sharply at the end of last week, led by big tech. The S&P 500 was down by more than 2% last week, its weakest performance in 2 months, while the Nasdaq was lower by 3%. The market has now given back half of the post-Trump election win gains.
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.