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Dollar on the defensive, focus on EU sentiment, US PPI and central bank speeches

This is what you need to know to trade today Tuesday, November 9:

The US dollar remained under modest downward pressure on Monday and weakened against its rivals, with risk appetite sentiment making it difficult for the safe-haven currency to find demand. The US dollar DXY index continues to push lower at the start of the European session on Tuesday and is trading below the 94.00 level for the first time since the Fed’s monetary policy announcement last week. The ZEW opinion poll for the Eurozone and Germany will focus the attention of market participants ahead of the US PPI producer price index data. Meanwhile, several central bankers, including ECB President Lagarde, BoE President Bailey and Fed Chairman Powell, will deliver speeches later in the day.

Macro events: On Monday, euro zone data showed Sentix investor sentiment improved to 18.3 in November from 16.9 in October. The ZEW survey economic sentiment index is expected to decline in both the euro zone and Germany for November when released later today in the day.

The chief economist of the European Central Bank (ECB), Philip Lane, reiterated on Monday that inflation dynamics in the medium term remains weak in the euro zone. On the other hand, St. Louis Federal Reserve Chairman James Bullard told Fox Business Network that he expects the Fed to raise its monetary policy rate twice in 2022. Meanwhile, Bloomberg reported that US President Biden has interviewed Lael Brainard for next Fed chairman. Commenting on that issue, “I expect a lot of continuity in the Fed’s monetary policy no matter how the Fed chair nomination process works,” Bullard said.

The main indices of Wall Street They ended the first day of the week modestly higher and US stock index futures fell between 0.3% and 0.2% at the start of the European session on Tuesday. The benchmark 10-year US Treasury yield advanced on Monday, but lost its traction after failing to regain 1.5%.

The EUR/USD it closed in positive territory on Monday and is approaching the static resistance zone that appears to have formed around 1.1620.

The GBP/USD made a decisive recovery early in the week and remains relatively quiet above the 1.3550 region on Tuesday. Unresolved issues around the Brexit protocol in Northern Ireland could limit the pair’s rise.

The USD/JPY fell below 113.00 amid falling US Treasury yields and hit their lowest level in nearly a month. Cautious market sentiment appears to be helping the JPY outperform its rivals.

The oro It built on the strong gains it posted in the second half of the prior week and reached its highest level since early September at $ 1,826. XAU / USD is currently fluctuating within a tight range above $ 1,820, awaiting the next catalyst.

Cryptocurrencies: The Bitcoin it retained its bullish momentum and hit another all-time high on Tuesday. Currently, BTC is close to $ 70,000. The Ethereum is approaching $ 5,000.

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