This is what you need to know to trade today Friday, November 12:
Following subdued market action on Thursday, the dollar continued to gain strength against its rivals as the 10-year US Treasury yield opened bullish and tested 1.6% in the Asian session. The US dollar DXY index remains near the 16-month highs it pegged at 95.26 earlier in the day and investors await the release of the University of Michigan consumer sentiment index and the September JOLTs job openings report. The European economic calendar will have industrial production data. Investors will also be on the lookout for comments on inflation.
See: Michigan Consumer Sentiment Preview: The Dangerous Impact of Inflation
Market sentiment: The major Wall Street indices closed mixed Thursday amid mixed performance from major sectors. The Shanghai Composite Index is looking to close with small gains on Friday and the Nikkei 225 is up 1%. Meanwhile, US stock index futures are up between 0.15% and 0.25% at the start of the European session.
The oro it closed for the sixth day in a row in positive territory on Thursday, but appears to have entered a consolidation phase above $ 1,850 on Friday. The technical breakout and the precious metal’s status as an inflation hedge helped the XAU / USD post impressive gains this week.
The EUR/USD failed to establish a convincing rebound on Thursday and remains on the defensive before the weekend. Monetary policy divergence between the Fed and the European Central Bank (ECB) continues to drive the pair’s price action. According to the CME Group, markets are now pricing in a 70% chance of a Fed rate hike by June 2022, compared to 60% last week.
The GBP/USD It plunged to its lowest level in nearly a year early on Friday, when uninspiring data from the UK made it difficult for the British pound to find demand despite some positive Brexit comments. The pair is moving in a tight range below 1.3400 on Friday.
The USD/JPY It rose above 114.00 on the back of rising US Treasury yields and is targeting the multi-year highs it set at around 114.70 at the end of October.
Cryptocurrencies: The Bitcoin it continues to move sideways around $ 65,000 after struggling to find direction on Thursday. The Ethereum It appears to have regained its traction after seeing a deep mid-week correction and is trading above $ 4,700.