During the Asian session, the Australian Monthly CPI is due. Additionally, the Reserve Bank of New Zealand will announce its decision on monetary policy. Later in the day, inflation figures from Spain and Germany will be closely watched. The US will report an updated estimate for Q3 GDP.
Here is what you need to know on Wednesday, November 29:
The US Dollar tumbled across the board. The comments from Federal Reserve Governor Christopher Waller stating that if inflation consistently declines, there is no reason to insist on keeping interest rates really high reinforced the negative momentum of the Greenback. Fed's Mester will speak on Wednesday.
The US Dollar Index (DXY) broke below 103.00, falling to 102.60, the lowest intraday level since August 11. The 10-year US Treasury yield fell to 4.33%, the lowest since September 20. The Dow Jones reached its highest level since August, continuing the rally and adding another negative factor for the US Dollar.
The CB Consumer Confidence Index rose in November to 102.0 but after a downward revision to October figures from 102.6 to 99.1. The US S&P/Case-Shiller Home Price Index rose 3.9% YoY in September, slightly below the expected 4%. Data due from the US on Wednesday includes a new estimate of Q3 GDP growth. Later in the day, the Federal Reserve will release the Beige Book.
EUR/USD tested levels above 1.1000 and pulled back. The trend remains up, but a correction seems overdue. It will be a crucial day regarding economic data for the European Central Bank (ECB) as Spain and Germany will release inflation figures for November, with both countries expected to report a slowing in the annual inflation rate. Eurostat will release its Sentiment survey.
GBP/USD rose for the fourth consecutive day and reached levels above 1.2700 before pulling back. With technical indicators at overbought levels, like many currency pairs, some consolidation seems likely.
USD/JPY tumbled amid lower US Yields, falling to 107.50. The bearish pressure persists, and there is scope for further losses.
AUD/USD continued to edge higher and climbed to 0.6665 before pulling back. Risk appetite, lower yields, and higher commodity prices support the upside. The Australia Monthly Consumer Price Index is due, with the annual inflation rate expected to slow from 5.6% in September to 5.2% in October.
Australian CPI Preview: Forecasts from five major banks, inflation likely to be lower
NZD/USD broke above the 200-day Simple Moving Average (SMA) and 0.6100, finding resistance around 0.6150. The bias is to the upside, with the RSI approaching 70 in the daily chart. The Reserve Bank of New Zealand (RBNZ) will announce its decision on monetary policy. No change in rates is expected.
RBNZ expected to hold interest rate steady at 5.50% at November meeting
Gold accelerated to the upside and posted the highest daily close since May, around $2,040, boosted by the decline in US yields. Despite extreme readings, the positive momentum prevails, and XAU/USD is looking for a new equilibrium level. Silver rose to the $25.00 area.
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
EUR/USD: Further declines remain well in store
EUR/USD broke below the key 1.0500 support to clock a new 2024 low, always on the back of the intense strength in the Greenback, which sent the US Dollar Index (DXY) to fresh yearly peaks past 107.00 ahead of key US data releases on Friday.
GBP/USD reclaims the 1.2700 barrier and above
In line with the rest of its risk-related peers, GBP/USD leaves behind the initial drop to multi-month lows near 1.2630 and attempts a move beyond 1.2700 the figure amidst renewed weakness in the Greenback.
Gold trims early losses hovers around $2,575
The loss of momentum in the US Dollar and the retracement in US yields across the curve allow Gold prices to pick up some upside traction and revisit the $2,570 zone per ounce troy, trimming part of their early losses.
Dogecoin Price Prediction: Could DOGE turn deflationary after 100% rise? Elon Musk weighs in
Dogecoin (DOGE) is down 4% on Thursday after key figures, including Elon Musk, shared views on its token design and what a deflationary path could mean for its appeal as a currency.
Trump vs CPI
US CPI for October was exactly in line with expectations. The headline rate of CPI rose to 2.6% YoY from 2.4% YoY in September. The core rate remained steady at 3.3%. The detail of the report shows that the shelter index rose by 0.4% on the month, which accounted for 50% of the increase in all items on a monthly basis.
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.