Here is what you need to know on Thursday, November 14:
Following a subdued performance on Wall Street on Wednesday, Asian markets turned south amid persistent worries over China’s economy, despite the recent stimulus measures rolled out to spur growth.
Markets also remained unnerved amid sticky US inflation figures, which raised concerns over the prospects of future interest rate cuts by the US Federal Reserve (Fed). US CPI rose 2.6% annually in October, coming in higher than the 2.4% growth in September while meeting the forecast. The annual core CPI inflation steadied at 3.3% in the same period vs. 3.3% expected. Monthly figures also aligned with the estimates.
Additionally, waning Trump trades optimism adds to the dour market mood as we head into the European session. However, the US Dollar continues to extend the rally following Donald Trump’s election victory. The Greenback received a fresh boost alongside the US Treasury bond yields after the Associated Press (AP) called the House race with Republicans winning the majority.
US President-elect Trump’s policies on trade and taxes are seen as inflationary and supportive of the USD, Treasury bond yields, etc. The Greenback stands tall near yearly highs against its major rivals even after the inflation data ramped up bets on a December rate cut. The market’s pricing for such a move next month now stands at about 83%, the CME Group’s FedWatch Tool shows, compared with around 63% seen before the data release.
The attention now turns toward the US Producer Price Index (PPI) and Jobless Claims data while speeches from several Fed policymakers, including Chairman Jerome Powell, will hog the limelight as investors look out for more cues on the Fed’s easing trajectory.
Across the FX board, the Japanese Yen emerged as the main laggard in Asia as USD/JPY refreshed four-month highs above 156.00. The uncertainty over the Bank of Japan (BoJ) rate hikes and the unabated USD demand continues to underpin the major.
AUD/USD remains at the losing end, trading at its weakest in three months near 0.6460. The Australian labor data showed some cooldown in the job market. Ahead of the Aussie jobs data release, Reserve Bank of Australia (RBA) Governor Michele Bullock said that monetary policy was sufficiently restrictive and would remain at current levels until the bank was confident inflation was easing.
NZD/USD tracks the downside in all commodity currencies, with USD/CAD back on the 1.4000 level for the first time since May 2020. WTI Oil extends its losing streak amid risk aversion and demand concerns from China. The US oil is challenging the $68 threshold, as of writing.
EUR/USD stays vulnerable, sitting at yearly troughs near 1.0550. Traders await ECB-speak and a bunch of Eurozone economic data releases and the ECB Accounts for fresh trading impetus ahead of the US events.
GBP/USD struggles at around 1.2700 as investors continue to prefer the US currency. All eyes remain on BoE policymaker Catherine Mann’s and Governor Andrew Bailey’s appearances due later in the day.
Gold keeps its downside momentum intact, flirting with two-month lows below $2,560. Buyers must defend the critical support near $2,545, the confluence of the 100-day Simple Moving Average (SMA) and the September 18 low.
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 sits at yearly lows near 1.0550 ahead of EU GDP, US PPI data
EUR/USD is trading near 1.0550 in the European session on Thursday, sitting at the lowest level in a year. The Trump trades-driven relentless US Dollar buying and German political instability weigh on the pair. Traders await EU GDP data and US PPI report ahead of Fed Chair Powell's speech.
GBP/USD holds losses below 1.2700 on sustained US Dollar strength
GBP/USD is holding losses near multi-month lows below 1.2700 in European trading on Thursday. The pair remains vulnerable amid a broadly firmer US Dollar and softer risk tone even as BoE policymakers stick to a cautious stance on policy. Speeches from Powell and Bailey are eyed.
Gold price hits fresh two-month low as the post-election USD rally remains uninterrupted
Gold price drifts lower for the fifth consecutive day and drops to its lowest level since September 19, around the $2,554-2,553 region heading into the European session on Thursday. The commodity continues to be weighed down by an extension of the US Dollar's post-election rally to a fresh year-to-date.
XRP struggles near $0.7440, could still sustain rally after Robinhood listing
Ripple's XRP is trading near $0.6900, down nearly 3% on Wednesday, as declining open interest could extend its price correction. However, other on-chain metrics point to a long-term bullish setup.
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.