Amid another strong performance, the US Dollar climbed to new six-month tops as investors maintained their optimism around the “Trump trade" ahead of the publication of key US data in the latter part of the week.
Here is what you need to know on Wednesday, November 13:
The US Dollar Index (DXY) rose past the 106.00 barrier to hit multi-month peaks, helped by the marked bounce in US yields. The release of the US Inflation Rate will be at the centre of the debate, seconded by the MBA’s Mortgage Applications and the API’s weekly report on US crude oil inventories. In addition, the Fed’s Logan, Musalem, and Schmid.
EUR/USD weakened further and clocked new 2024 lows in the 1.0595-1.0590 band in response to the robust sentiment around the Greenback.
GBP/USD extended its deep leg lower to the 1.2720 region, or three-month lows, always on the back of the incessant move higher in the US Dollar.
USD/JPY added to Monday’s advance and came just short of four-month highs near the 155.00. Producer Prices will be in the limelight on the Japanese docket.
Another day of marked gains in the Greenback kept AUD/USD under pressure and prompted it to revisit the area of monthly lows near 0.6510. The Wage Price Index will be unveiled.
WTI prices alternated gains with losses around the $68.00 mark per barrel following two consecutive daily pullbacks as traders gauged the OPEC+ revised forecast for crude oil demand for this year and the next once, while the strong US Dollar kept the price action subdued.
Further downside saw Gold prices tumble to two-month lows in the sub-$2,600 region per ounce troy against the backdrop of extra gains in the Greenback and increasing US yields. Silver prices deflated to five-week lows, although the key $30.00 mark per ounce zone held the downside.
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EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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