Here is what you need to know on Wednesday, November 15:
The US Dollar (USD) struggles to find demand after suffering heavy losses against its major rivals on Tuesday and Pound Sterling (GBP) weakens in the European morning on Wednesday. Industrial Production and Trade Balance data for September will be featured in the European economic docket mid-week. In the American session, Producer Price Index (PPI) and Retail Sales figures for October will be watched closely by market participants.
The USD Index turned south in the American trading hours on Tuesday and lost 1.5%, posting one of its largest one-day losses of the year. The data from the US revealed that inflation in the US, as measured by the Consumer price Index (CPI), softened to 3.2% in October from 3.7% in September. In turn, Wall Street's main indexes rallied and the benchmark 10-year US Treasury fell to its lowest level in nearly two months below 4.5%. Early Wednesday, the USD Index consolidates its losses slightly above 104.00 and US stock index futures trade modestly higher on the day.
US Dollar price this week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the weakest against the New Zealand Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -1.67% | -1.99% | -0.84% | -2.22% | -0.49% | -2.32% | -1.48% | |
| EUR | 1.65% | -0.31% | 0.82% | -0.51% | 1.16% | -0.64% | 0.19% | |
| GBP | 1.95% | 0.32% | 1.12% | -0.23% | 1.46% | -0.33% | 0.50% | |
| CAD | 0.83% | -0.81% | -1.13% | -1.36% | 0.34% | -1.46% | -0.63% | |
| AUD | 2.16% | 0.54% | 0.22% | 1.34% | 1.67% | -0.11% | 0.72% | |
| JPY | 0.49% | -1.18% | -1.48% | -0.34% | -1.71% | -1.82% | -0.97% | |
| NZD | 2.28% | 0.65% | 0.34% | 1.45% | 0.11% | 1.79% | 0.83% | |
| CHF | 1.47% | -0.17% | -0.49% | 0.63% | -0.72% | 0.98% | -0.81% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
During the Asian trading hours on Wednesday, the data from China revealed that Retail Sales rose 7.6% on a yearly basis in October and Industrial Production grew by 4.6%. Both of these prints came in slightly better than analysts' estimates.
GBP/USD gained more than 200 pips and rose above 1.2500 for the first time since mid-September on Tuesday. In the early European session on Wednesday, the pair lost its traction and retraced a small portion of its rally after the UK's Office for National Statistics reported that the annual CPI in the UK increased 4.6% in October, down sharply from 6.7% in September.
EUR/USD broke above 1.0800 and continued to push higher toward 1.0900 on Tuesday, touching its highest level in 11 weeks in the process. Early Wednesday, the pair seems to have gone into a consolidation phase above 1.0850.
USD/JPY made a sharp downward correction amid broad-based USD weakness on Tuesday and snapped a six-day winning streak. At the time of press, USD/JPY was posting small daily gains at around 150.70. The data from Japan revealed that Industrial Production expanded by 0.5% on a monthly basis in September.
Gold benefited from falling US yields and rose nearly 1% on Tuesday. XAU/USD continues to stretch higher early Wednesday and was last seen rising 0.35% on the day at around $1,970.
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 stays below 1.1100, looks to post weekly losses
EUR/USD continues to trade in a narrow range below 1.1100 and remains on track to end the week in negative territory. Earlier in the day, monthly PCE inflation data from the US came in line with the market expectation, failing to trigger a reaction.
GBP/USD struggles to find a foothold, trades near 1.3150
GBP/USD stays on the back foot and trades in negative territory at around 1.3150 on Friday. The US Dollar holds its ground following the July PCE inflation data and doesn't allow the pair to stage a rebound heading into the weekend.
Gold retreats toward $2,500 ahead of the weekend
Gold stays under modest bearish pressure and declines toward $2,500 in the American session on Friday. The 10-year US Treasury bond yield edges higher toward 3.9% after US PCE inflation data, causing XAU/USD to stretch lower.
Week ahead – Investors brace for NFP amid Fed rate cut speculation
Here comes another NFP week, with investors eagerly awaiting the results as they try to discern the size and pace of the Fed’s forthcoming rate cuts. The weaker than expected July numbers triggered market turbulence, instilling fears about a potential recession in the US.
Easing Eurozone inflation to back an ECB rate cut in September Premium
Eurostat will publish the preliminary estimate of the August Eurozone Harmonized Index of Consumer Prices on Friday, and the anticipated outcome will back up the case for another European Central Bank interest rate cut when policymakers meet in September.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.