On Tuesday, November 23, the dollar and U.S. Treasury yields were subdued amid a lack of major data or events. The dollar index closed down 0.57% at 107.16, ending a three-day upward trend.
Oil markets remain finely balanced going into the winter months, with OECD stocks trending at the lowest levels since 2004. The approaching EU embargoes on Russian crude and oil product imports and a ban on maritime services will add further pressure on global oil balances, and, in particular, on already exceptionally tight diesel markets.
The currency pair has completed a structure of a declining wave to 1.0222. Today a link of correction to 1.0277 is not excluded (a test from below). Then falling to 1.0160 should follow. from where the wave might continue to 1.0111. The goal is local.
Soybeans slid on concerns over demand from top importer China, which is facing rising number of COVID-19 cases.
As the market shows, This week could be a relatively quiet one for the currencies, but it is worth keeping an eye on oil prices and the rhetoric of the Fed officials.
GBP/USD remains pressured towards 1.1500 during early Thursday morning in Europe, reversing the previous day’s rebound, as global markets remain dicey ahead of the US data.
EUR/USD bears are lurking below 1.0300 and eye a fast break below support. The bulls are gathering at 4-hour support in the meanwhile.
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On Tuesday, November 22, Beijing time, during the Asian and European session, spot gold rebounded slightly, and is currently trading near at $ 1742.45 per ounce. Two Fed officials this week's speech is less hawkish than last week, and some analysts even interpreted it as dovish. The dollar index retracted some of the overnight gains, which gave gold prices the opportunity to rally.
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On Monday, November 21, the dollar index rose 1% during the day and stood at the 108 mark, but failed to hold above the mark, which finally closed up 0.79% at 107.81.
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World stocks were heading on Friday for a 1% loss on the week, drifting from recent two-month highs after US Federal Reserve officials fired more warning shots on interest rates, while the US bond yield curve priced for a recession.
US stocks and Treasuries slumped as Federal Reserve officials hammered home their resolve to remain persistent in their fight against inflation and warned of more pain to come.
The Consumer Price Index, (CPI) which measures inflation showed annual inflation eased to 7.7% in October according to The data, slowing for the fourth straight month and below analyst expectations of 8%. The underlying readings also surprised to the downside, putting downward pressure on the dollar and Treasury yields and moving money markets to price the Fed's terminal rate below 5%, with yields falling further in one day in a decade.
A week of consolidation Ahead amid renewed USD strength
On Monday, November 21, Beijing time, during the Asian and European session, spot gold shock weakness, once hit a new low of more than a week to $ 1743.59 per ounce. Last week a number of Fed officials delivered hawkish speeches, and even some officials affirmed the possibility of another 75 basis point rate hike in December.
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On Friday, November 18, the dollar index in the European shares in the morning session to refresh the daily low fell below 106.40; in the U.S. stocks at midday to get rid of the decline approaching 107, but by the end of the day failed to recover the mark, closing up 0.26% at 106.97, up two days in a row, ending a four-week losing streak.