What you need to know on Wednesday, November 10:
The dollar remained tepid during the Asian session, but became more attractive during US trading hours. The catalyst for dollar demand was another sign that inflationary pressures were spurring risk. Wall Street fell back after its foreign counterparts posted intraday gains, following the release of the US Producer Price Index, confirmed at 8.6% yoy in October.
The EUR / USD pair tried to advance past 1.1600 a couple of times, but was repulsed by persistently strong selling interest. Policy makers at the European Central Bank commented on the future of monetary policy. Klaas Knot said the conditions for a rate hike in 2022 are highly unlikely to be met, while lead supervisor Andrea Enria said the low interest rates from the ECB are now hurting bank margins more than they are boosting rates. loan volumes. The European Central Bank maintains a wait-and-see stance, considering that higher prices will be temporary.
GBP / USD is hovering around 1.3550 after a failed attempt to rally above 1.3600. Irish Foreign Minister Simon Coveney said that if the UK activated Article 16 on Northern Ireland it would provoke retaliatory action on Sunday, adding on Tuesday that it would provoke a “very strong response” from the EU.
Commodity-linked currencies fell along with Wall Street. AUD / USD is trading in the 0.7370 price zone, although USD / CAD eased from its intraday high amid the rebound in oil prices.
The EIA cut its forecast for global oil demand for 2022 by 130,000 barrels per day, raising the forecast for oil demand for this year by 60,000 barrels per day.
Gold is trading at new month-long highs around $ 1,830 a troy ounce amid gloomy market mood. Government bond yields, however, were slightly lower than the 10-year US Treasury yield, which is currently 1.44%.
The United States will publish the October price index on Wednesday, forecast at 5.3% year-on-year.