Forex Today: Markets will now look to inflation in Europe


The Greenback faced strong and sudden downward pressure, retreating to multi-day lows due to lower US yields and investors’ adjustments to month-end flows.

Here is what you need to know on Thursday, November 28:

The US Dollar Index (DXY) sold off to multi-day lows, breaking below the 106.00 support in tandem with extra weakness in US yields. The US markets will be closed due to the Thanksgiving Day holiday.

EUR/USD regained upside impulse and came closer to the key barrier at 1.0600 the figure following the strong pullback in the US Dollar. Germany’s preliminary Inflation Rate will take centre stage, seconded by EMU’s Economic Sentiment, the final Consumer Confidence gauge, the ECB’s Consumer Inflation Expectations, and speeches by the ECB’s Elderson and Lane.

GBP/USD rose markedly and flirted with weekly tops just pips away from the key 1.2700 hurdle. The UK’s Car Production figures will be published.

USD/JPY lost further ground and clinched five-week lows well south of the 151.00 support. The usual weekly Foreign Bond Investment readings will be released.

AUD/USD regained some composure and trimmed most of Tuesday’s pullback, revisiting at the same time the key 0.6500 barrier. Next on the Australian docket will be the quarterly Private Capital Expenditure, and the speech by the RBA’s Bullock.

WTI prices weakened to the vicinity of the $68.00 mark per barrel following alleviated geopolitical concerns and an unexpected strong build in US gasoline inventories, as reported by the EIA.

Gold prices added to Tuesday’s modest advance and briefly tested the $2,660 region per troy ounce on the back of the Greenback’s sell off, lower yields and further repricing of the Fed’s rate path following sticky US PCE readings. Silver prices tumbled to two-week lows, breaking below the key $30.00 mark per ounce.

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