This is what you need to know to trade today wednesday november 23:
Markets remain relatively quiet early on Wednesday as investors remain on the sidelines awaiting key macroeconomic data releases. The Dollar Index, which snapped a three-day winning streak on Tuesday, is trading sideways near 107.00, while the 10-year US Treasury yield and US stock index futures .UU. They operate without changes in the day. S&P Global will release the preliminary November manufacturing and services PMI surveys for Germany, the Eurozone, the United Kingdom and the United States. Also on the US economic calendar will be October durable goods orders and new home sales, weekly initial jobless claims and the University of Michigan consumer sentiment survey. Finally, the US Federal Reserve will publish the Minutes of the October monetary policy meeting before the Thanksgiving holidays.
US PMI Preview: Will markets continue to price in a 50 basis point hike from the Fed?
During the Asian session, the Reserve Bank of New Zealand (RBNZ) announced that it had raised its interest rate by 75 basis points (bp), to 4.25%, as expected. In its monetary policy statement, the RBNZ said it expected the policy rate to peak at 5.5% next year and expected the economy to enter recession by mid-2023. At a news conference, the governor of the RBNZ manager Adrian Orr noted that policymakers spent more time considering whether to raise the interest rate by 75 or 100 basis points rather than 50 basis points. The NZD/USD It rose towards 0.6200 on initial reaction to the rate decision but eased back towards 0.6150 in European morning.
RBNZ: It will be a short recession – Adrian Orr
Meanwhile, CME Group’s FedWatch tool shows that markets are currently pricing in a 75% chance that the US Federal Reserve (Fed) will opt for a smaller rate hike of 50 basis points in December. In the October monetary policy statement, the Fed said that policymakers will take into account cumulative tightening and the lags with which monetary policy affects economic activity and inflation when determining the pace of rate hikes.
FOMC Meeting Minutes Preview: Three Reasons to Expect a Lower Dollar
The EUR/USD it gained almost 50 points on Tuesday and closed above 1.0300. The pair continues to rise early in the morning in Europe. S&P Global PMI surveys are expected to show business activity in the manufacturing and service sectors in Germany and the Eurozone continued to contract in early November.
The GBP/USD It took advantage of modest US dollar weakness on Tuesday and rallied towards the upper end of its weekly range near 1.1900. The pair is trading in a relatively tight range near that level early on Wednesday.
The USD/JPY it pulled back from the 10-day high reached above 142.00 earlier in the week and ended up losing 100 points on Tuesday. The pair seems to have entered a consolidation phase above 141.00 in the middle of the week.
The gold price it struggled to gain momentum to the upside on Tuesday and dipped towards $1,730 in the Asian session on Wednesday before staging a bounce. Although US bond yields are holding steady, XAU/USD is having a hard time attracting bulls amid growing concerns about the demand outlook as China begins to tighten coronavirus restrictions.
After the sharp fall registered at the beginning of the week, Bitcoin it gained nearly 3% on Tuesday and extended its rally towards $16,500 early on Wednesday. In the same way, ethereum gained traction and was last seen trading above $1,150, up 2% on the day.
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.
