Dollar strengthens as inflation fears return

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Here’s what you need to know to trade during today’s Asian session Thursday, November 11:

Risk aversion took hold of the financial markets and the safe-haven US dollar made the most of it. The catalyst was US inflation, as the annual consumer price index soared to its highest level in three decades, reaching 6.3% year-on-year in October. Stock markets turned lower as yields soared, reflecting growing concerns of further tightening of monetary policy in the United States.

In addition, the president of the Federal Reserve Bank of San Francisco, Mary Daly, said that although it is temporary, high inflation hurts. He added that it would be premature to change the pace of monetary policy tightening.

The bad mood was exacerbated by news reports that the Chinese giant Evergrande is on the verge of bankruptcy. Some bondholders have not received coupon payments at the end of the 30-day grace period on coupon payments of more than $ 148 million on their April 2022, 2023, and 2024 bonds, and market rumors suggest that DMSA prepares bankruptcy proceedings against the Evergrande Group. With this in mind, Asian stocks may follow overseas stock markets on their way down when they open at the start of today’s session.

The pair EUR/USD settled below 1.1500, its lowest level since July 2020. The GBP/USD is approaching 1.3400 as investors await news on the Brexit front.

The pair AUD/USD falls to the region of 0.7330, with losses partially offset by the rise in gold prices, as the yellow metal is trading around $ 1,840 a troy ounce after hitting a multi-month high at $ 1,868.54. The USD / CAD it flirts with 1.2500 as crude prices eased, with WTI ending the day at $ 81.10 a barrel.

Cryptocurrencies: Bitcoin tops $ 69,000 as US inflation hits 30-year high


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