Things to watch out for on Tuesday, November 22:
The US dollar rose on Monday, helped by a negative turnaround in market sentiment. The aversion to risk domino Financial markets after China’s National Health Commission reported the deaths of two Covid-19 patients in Beijing, while the country reported more than 26,000 new infections on Sunday. Stay orders were issued in different regions, spurring concerns about a possible setback in the global economy amid the country’s strict covid policy.
EUR/USD is trading not far from a daily low of 1.0222, while GBP/USD is barely holding above the 1.1800 figure. Germany released the Producer Price Index (PPI) for October, which unexpectedly contracted 4.2% MoM. The annual figure rose 34.5%, well below the previous 45.8%. It is the first sign of easing inflation in the EU.
The member of the Executive Committee of the Central BankEuropean (ECB) ), Philp Lane, spoke out on the matter, saying that any recession in the Union would be mild and short-lived. He also signaled that the ECB would raise rates again in December, moving towards the necessary levels. The member of the Governing Council, Robert Holzmann, said that if the current situation persists, they will go for a rise of 75 basis points in December. Finally, the person in charge of ECB policy, Mario Centeno, pointed out that there are many conditions for the rate hike to be less than 75 basis points in December.
Commodity-linked currencies ended the day with losses against the dollar. The AUD/USD pair is trading around 0.6600, while the USD/CAD stands at 1.3440, after an intraday high of 1.3416.
The Japanese yen was one of the weaker rivals of the dollar, ending the day around 142.05. Meanwhile, the USD/CHF pair rallied to the 0.9590 zone.
Gold fell for the fourth day in a row and settled at around $1,738 a troy ounce. On the other hand, crude oil prices plunged ahead of the US opening, amid market talk suggesting that some OPEC members were considering a production increase of up to 500,000 barrels per day. The news was later denied by the minister of Energy saudiwhich stated that the current OPEC+ deal will continue until the end of 2023. Crude prices pared early losses and ended the day largely unchanged, with WTI now trading at $80 a barrel.
The week will be light in terms of macroeconomic releases, focusing on the FOMC meeting minutes due on Wednesday.
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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.
