Forex Today – Asian Session: Gold Shines as US Yields Fall; WTI falls

During the Asian session, New Zealand will release Producer Inflation data. Later, attention will turn to the UK retail sales report. In the United States, real estate sector data will be published, with housing starts and construction permits.

Here’s what you need to know on Friday, November 17:

The Dollar Index (DXY) rose slightly on Thursday and ended around 104.40. The dollar regained ground despite weak US economic data and falling US yields.

Continuing claims for jobless benefits in the United States hit the highest level since 2022, and initial claims rose to 231,000, the highest level in nearly three months. Industrial Production fell 0.6% in October, exceeding the expected 0.3% contraction. On the positive side, the Philadelphia Fed manufacturing survey index rose from -9 to -5.9, and the Kansas Fed manufacturing activity index recovered from -8 to -3 in November.

The dollar bottomed after the data, but then recovered although US yields headed towards weekly lows, with the 10-year yield falling to 4.43%. Data released Thursday pointed to a weaker labor market and, combined with recent inflation data, reinforced the view that the Federal Reserve is unlikely to raise interest rates further. On Friday, the United States will report on building permits and housing starts.

Gold jumped and recorded the highest close in more than two weeks, above $1,980. The yellow metal reached a high of $1,987 and then retreated moderately. Falling yields helped XAU/USD gain momentum after breaking above the 20-day SMA and $1,975 level. Silver hit its highest level in two months, but failed to hold above $24.00 and pared gains, falling back to $23.75.

Oil prices fell by around 5%. WTI was near $73.00, the lowest level in four months, affected by concerns about global oil demand.

The EUR/USD pair finished virtually flat around 1.0850. The pair reached a new monthly high just below 1.0900 and then retreated. Bullish momentum fades as the US Dollar strengthens. Eurostat will publish the final reading of the Consumer Price Index for October, in which it is expected that there will be no surprises. The president of the European Central Bank (ECB), Christine Lagarde, will speak at the European Banking Congress in Frankfurt. Her words are likely to have little impact as the market expects the central bank to keep rates unchanged in upcoming meetings.

GBP/USD lost ground but managed to finish above 1.2400. The trend is bullish, but the Pound is facing resistance from the 100-day SMA at 1.2500. UK October retail sales data will be released on Friday, with a monthly rise of 0.3% expected.

The pair NZD/USD traded lower and the Kiwi fell below 0.6000. The New Zealand Producer Price Index for the third quarter will be published on Friday.

The Australian Dollar did not benefit from an upbeat jobs report and higher inflation expectations. The AUD/USD pair fell from 0.6500 to 0.6460.

The Canadian dollar was one of the worst performers, affected by the fall in oil prices. USD/CAD rose from 1.3685 to 1.3775. Key support is the 55-day SMA at 1.3655. The industrial products price index and the raw materials price index will be published on Friday.