The US Dollar (USD) added to Friday’s small pullback and flirted with the area of three-day lows as investors continued to pencil in further interest rate cuts by the Federal Reserve.
Here’s what to watch on Tuesday, November 25:
The US Dollar Index (DXY) remained offered, coming under pressure and challenging its key support around 100.00 on the back of mixed US Treasury yields, at the time when investors seem to have resumed their expectations for further rate cuts by the Fed. An interesting US docket will feature the usual ADP Employment Change Weekly, seconded by Retail Sales, Producer Prices, the Conference Board’s Consumer Confidence, the FHFA’s House Price Index, Pending Home Sales, and the API’s weekly report on US crude oil inventories.
EUR/USD regained a bit of a smile, leaving behind six consecutive daily pullbacks and revisiting the 1.1550 region in quite a promising start to the week. Germany’s final Q3 GDP Growth Rate will take centre stage alongside speeches by the ECB’s Cipollone and Donnery.
GBP/USD rose modestly, although enough to keep the three-day recovery well in place, this time flirting with the 1.3120 zone. The CBI Distributive Trades will be the sole release across the Channel.
USD/JPY rapidly left behind Friday’s correction and resumed its uptrend, faltering just ahead of the 157.00 barrier. Next on the Japanese calendar will be the final prints of the Coincident Index and the Leading Economic Index.
AUD/USD traded in a positive fashion around its critical 200-day SMA near 0.6460, adding to Friday’s rebound. Next on tap in Oz will be the crucial Inflation Rate on November 26, seconded by the quarterly Construction Work Done and the speech by the RBA’s Smith.
WTI prices traded with marked gains in the area of four-week lows in the sub-$58.00 region per barrel as traders assessed the likelihood of peace talks in the Russia-Ukraine conflict and probable interest rate cuts by the Fed in the next few months.
Gold maintained its erratic performance well in place, this time surpassing the $4,100 mark per troy ounce amid a weak Greenback and hopes of further easing by the Fed. Silver prices followed suit, setting aside two daily declines in a row and approaching the $51.00 mark per ounce once again.
