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Forex Today – Asian Session: Dollar weakens ahead of US CPI

Tuesday’s key report is the US Consumer Price Index. During the Asian session, the Westpac Australian Consumer Confidence Index and the National Australia Bank Business Survey will be released. Later, employment data will be released in the United Kingdom, wholesale inflation will be released in Switzerland, and GDP and employment figures for the third quarter will be released in the Eurozone.

Here’s what you need to know on Tuesday, November 14:

The Dollar Index (DXY) fell for the second consecutive day, extending its decline from the 106.00 area to 105.60. The decline in the dollar was influenced by the decline in US Treasury yields and the rise in commodity prices. The 10-year yield fell to 4.62%, while the 2-year yield fell to 5.02%.

Markets’ attention is focused on US inflation data due out on Tuesday. The Consumer Price Index (CPI) is expected to rise 0.1% in October, with the annual rate slowing from 3.7% in September to 3.36% in October. The underlying annual rate is expected to remain at 4.1%. If the numbers match expectations, it would reinforce the market’s belief that the Federal Reserve is done raising interest rates.

EUR/USD remained above 1.0650 and rose to the 1.0700 area, showing a short-term sideways movement. Eurostat will publish employment and growth data for the third quarter. The ZEW survey for November will also be published.

He GBP/USD pair had a bullish bias throughout the day and rose to 1.2280 after holding above the 20-day SMA. UK employment data, including average earnings, will be reported on Tuesday.

USD/CHF It reached weekly highs before retreating towards 0.9000. Swiss wholesale inflation data will be released on Tuesday, and Swiss National Bank (SNB) President Thomas Jordan is scheduled to give a speech.

After five days of declines, the AUD/USD pair rose, finding support above 0.6330 and approaching 0.6400. The Westpac Consumer Confidence and National Australia Bank business surveys will be released on Tuesday. On Thursday, the key report of the week will be the employment numbers. The third quarter wage price index will be relevant on Wednesday.

The NZD/USD pair found support around the 0.5865 area at the 20-day SMA and rebounded but failed to regain 0.5900. Stats NZ will publish the food price index and begin publishing other monthly price indices.

USD/CAD ended the day flat, hovering around 1.3800. The pair remains sideways without clear signals.

Commerzbank on the Canadian Dollar:

The Bank of Canada (BOC) suspended its rate-hiking cycle for the second time in early September and has kept its key interest rate steady at 5% since then. At the same time, the Fed is debating another rate hike. This difference in monetary policy is currently supporting USD/CAD. In the coming weeks, however, it will likely become clear that there will be no more rate hikes in the US either. As we expect a recession in the US next year, while the Canadian economy will likely stick a landing soft, we see recovery potential for the CAD next year.

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Source: Fx Street

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