Things to look out for on Wednesday, November 16:
It was another volatile day in the currency sphere, with optimism and fears mixed throughout the day. The US dollar slumped to fresh monthly lows against most of its rivals ahead of the Wall Street open, but posted a nice comeback before the close.
The modest worries arose at the beginning of the day after the lukewarm Chinese data. According to official sources, Industrial Production grew 5% year-on-year in October, failing to meet market expectations of a 5.2% expansion. Likewise, Retail Sales contracted by 0.5% in the same period, worse than the 1% increase expected.
Market sentiment improved following the release of the US Producer Price Index, as it rose 8% year-on-year, up from 8.4% previously.
The mood changed after the news that Russian missiles hit Poland killing at least two people. Missiles landed in the Polish town of Przewodów, near the Ukrainian border, and the government called an emergency meeting. It’s worth remembering that Poland is a NATO member, and things could escalate quickly. Some Polish sources suggest that it is most likely the remains of a Russian rocket shot down by the Ukrainian Armed Forces.
EURUSD peaked at 1.0480 and then fell to 1.0292. It is currently trading around 1.0320. GBPUSD is around 1.1830 after rising to 1.2028. UK employment data was generally disappointing. The ILO unemployment rate rose to 3.6% in September, while wage inflation rose in October. The country will publish the Consumer Price Index for October on Wednesday.
Commodity currencies ended the day with modest gains against their US rival, with AUDUSD trading around 0.6750 and USDCAD around 1.3300. Reserve currencies remained under pressure, with USDCHF trading at 0.9450 and USDJPY at 139.40.
Gold extended its monthly rally but ended Tuesday with modest gains around $1,776 a troy ounce. Crude oil prices rallied on news from Russia and Ukraine, with WTI settling around $86.80 a barrel.
The Former US President Donald Trump , said he would make an announcement at his Mar-a-Lago home tonight. Market players anticipate that he will announce that he will run for president again in 2024.
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
