Dollar consolidates Monday’s rally, markets await November PMI data

This is what you need to know to trade today Tuesday, November 23:

The dollar continued to outperform its main rivals at the start of the week, fueled by rising US Treasury yields following US President Joe Biden’s decision to appoint Jerome Powell to a second term as Fed chairman. The US Dollar Index, which hit a 16-month high at 96.60 earlier in the day, is consolidating its gains around the 96.50 zone. Investors await preliminary November PMI surveys of manufacturing and services in the euro area, Germany, the UK and the US.

The S&P 500 closed in negative territory on Monday, but the Dow Jones industrial average managed to post modest daily gains on rate-sensitive financial stocks capitalizing on rising returns. Reflecting the market appreciation of the Fed’s optimistic outlook, the Yield on 10-year US Treasuries rose 5% on Monday and appears to have settled above 1.6% on Tuesday. US equity futures are declining in the European morning, suggesting that the mood could turn cautious in the second half of the day.

The pair EUR/USD it encountered further downward pressure in the second half of the day and fell to its weakest level in more than a year at 1.1226. The pair is currently moving sideways below 1.1250. Martins Kazaks, a member of the Governing Council of the European Central Bank (ECB), said on Monday that policy can examine inflation as long as it remains transitory. German Health Minister Jens Spahn said on Tuesday that they cannot rule out any measures to combat the fourth wave of COVID, including a lockdown.

The GBP/USD It fell below 1.3400 amid a broad dollar strength and appears to be struggling to stage a recovery. According to the latest reports, the UK will not activate Article 16 before Christmas, suggesting that negotiations are expected to continue in the coming weeks.

USD/JPY it is trading at fresh four-year highs above 115.00 as US bond yields continue to drive the pair’s action.

The oro it suffered heavy losses and fell more than 2% daily on Monday. The XAU / USD is currently trading slightly above $ 1,800.

The USD / CAD it is trading above 1.2700 for the first time since late September. According to Bloomberg, the United States is preparing to announce a release of crude reserves from the US Strategic Petroleum Reserve (SPR) along with several other countries as soon as Tuesday. The barrel of West Texas Intermediate (WTI) it has fallen almost 1% in the early hours of Tuesday, below $ 76 after the technical correction on Monday.

Cryptocurrencies: Bitcoin it moves sideways above $ 55,000 after losing more than 4% on Monday. Ethereum it remains above $ 4,000 after a two-day drop.