AUDUSD grinds lower around 0.6750, after refreshing a two-month high, as risk-off mood joins pre-data anxiety to challenge buyers during early Wednesday in Asia. West Texas Intermediate, put in a short squeeze https://masstamilan.in/what-does-dotbig-broker-offer-an-expert-review/ in the final part of the Wall Street session on Tuesday, moving into in-the-money shorts from th… Amid these plays, Wall Street pared initial gains and the US Treasury yields rebounded from the intraday low.

  • News that suggests a more hawkish central bank tends to push forex pairs up in value relative to other currencies, while dovish news can cause a currency to depreciate.
  • I.e. the 0.5% Actual is lower than the Forecast of 0.7% and the Previous of 0.6%.
  • It is worth noting that the Consumer Price Index was trimmed in October.
  • Alternatively, ECB President Christine Lagarde might welcome the latest positive economics to defend the hawkish plans of the region’s central bank.
  • Markets Cheer As Inflation Beast RetreatsIn a welcome development for financial markets, the annual inflation rate in the United States slowed to 7.7% in October, the lowest level since Janua…

Furthermore, Tuesday’s softer Producer Price Index reinforces the peak inflation narrative and continues to weigh on the buck. From time to time, however, economic announcements are very different from what the broader market was expecting, and this can cause an opposite market reaction. For example, if a central bank hints that rate cuts may be coming, but the currency still rises, there could be other factors in addition to the prospect of interest rate changes. If the currency does not drop on an expectation of a fall in interest rates, then positive sentiment is strong, and this could possibly indicate that it is now a buyer’s market. There is normally a consensus amongst leading economists about what level an economic announcement is likely to come in at.

A positive risk tone, and upbeat US Retail Sales cap gains for the metal

The XAUUSD holds steady above the $1,780 level through the early North American session, though a slight recovery in the risk sentiment keeps a lid on any further gains. The USDCAD is still subdued after United States economic data showed consumers resilience, while Canada’s inflation appeared to pause following a report. Also, a risk-off impulse, spurred by an upbeat US sales report, capped the USDCAD fall. At the time of writing, the USDCAD is trading at 1.3304, above https://www.forex.com/ its opening price by 0.21%. As the world’s most-traded financial market, foreign exchange presents a wealth of opportunities for those who can harness its inherent volatility. Open a forex trading account and use our award-winning platforms1 to take advantage of movements in currency prices. We’ve seen a positive feedback loop develop over the last few days after the weaker than expected US inflation figures gave a huge and historic boost to financial markets.

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Elsewhere, market forecasts of upbeat US data and the Bank of Canada’s bearish bias seem to keep the USDCAD buyers hopeful. On Tuesday, US Producer Price Index for October eased to 8.0% YoY versus market forecasts of 8.3% and the downwardly revised prior of 8.4%. It’s worth noting that the monthly figure reprinted the 0.2% prior (revised from 0.4%) while easing below 0.5% expectations. Moreover, the Federal Reserve Bank of New York’s Empire State Manufacturing Index jumped to 4.5 in November from -9.1 in October and the market expectation of -5. It should be noted that the US Retail Sales for October is expected to post 1.0% growth versus 0.0% prior.

Stocks volatile after PPI cools and Russian missiles crossed into Poland, BlockFi the next crypto domino to fall

The 4-hour chart shows the price dangling over the edge of the rally in resistance and on the back side of the prior micro trendline. This would be expected to lead to a phase DotBig Ltd review of distribution on the lower time frames where bears can be looking for an optimal entry according to the mid-week set ups that may, or may not, present themselves.

In the opinion of Lee Sue Ann, Economist at UOB Group, the Bank Indonesia could raise the key rate by half percentage point at Thursday’s meeting. From a technical perspective, the $1,785-$1,786 region now seems to have emerged as an immediate resistance. A sustained strength beyond should allow gold to reclaim the $1,800 psychological mark. The said handle coincides with the very important 200-day SMA and should act as a pivotal point to determine the next leg of a directional move for the XAUUSD.

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