Dollar retreats along with yields, risk sentiment drives markets

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This is what you need to know to trade today Thursday, November 18:

After its impressive rally to a new 2021 high above the 96.00 level, the DXY US Dollar Index turned down on Wednesday as the pullback in US Treasury yields made it difficult for the USD to continue to outperform. your rivals. Price action remains subdued early Thursday and risk sentiment could boost markets in the absence of high-level macro data releases.

Weekly initial jobless claims from the U.S. Department of Labor will be the only data to display on the U.S. economic calendar. New York Federal Reserve Chairman John Williams and Chicago Federal Reserve Bank Chairman Charles Evans are also expected to speak later. Market participants will also be on the lookout for monetary policy announcements from the Central Bank of Turkey after USD / TRY hit a new all-time high near 11.00.

The benchmark 10-year US Treasury yield lost nearly 3% on Wednesday and remains relatively quiet below 1.6% on Thursday. The main Wall Street indices ended the day in negative territory, but US stock index futures are rising at the start of the European session, pointing to an improvement in market sentiment.

The EUR/USD It managed to close above 1.1300 on Wednesday, but it appears to be having a difficult time picking up bullish momentum. Isabel Schnabel, a member of the Governing Council of the European Central Bank (ECB), said that rising inflation was a welcome development. In addition, he noted that the fact that the ECB continued to buy bonds was a sign that a rate hike was not imminent.

The GBP/USD it rose to a new weekly high near 1.3500 and is looking to extend its rebound. Hot inflation data in the UK appears to be supporting the British pound as investors focus on Brexit news.

The USD/JPY it erased its weekly gains on Wednesday under pressure from falling US Treasury yields. The pair is currently moving in a tight range above 114.00.

The oro It capitalized on the broad weakness of the dollar and snapped a two-day losing streak. At the time of writing, the XAU / USD traded sideways below $ 1,870. On Tuesday, the price of gold touched a multi-week high at $ 1,877.

The USD / CAD it advanced to its highest level in more than a month on Wednesday and appears to have entered a consolidation phase above 1.2600. The drop in crude oil prices is making it difficult for the CAD, sensitive to commodity prices, to find demand. A barrel of West Texas Intermediate WTI is currently trading at its lowest level in nearly six weeks at $ 77.75.

Cryptocurrencies: The selling pressure surrounding the Bitcoin It weakened on Wednesday, but BTC / USD continues to trade below the key $ 60,000 level. The Ethereum managed to post modest gains on Wednesday and remains afloat above $ 4,000.

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