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Forex Today: Risk Sentiment Improves Ahead of High-Level Data Release

This is what you need to know to trade today tuesday november 29:

Following Monday’s risk aversion, the feeling seems to have improved early on Tuesday, with major Asian stock indices posting impressive daily gains. The DXY Dollar Index, which rose more than 0.5% on Monday, has turned lower, with the dollar having a hard time finding safe-haven demand. The European Commission will publish the business and consumer sentiment surveys later in the session. In Germany, Destatis will publish the November inflation figures and in the economic agenda of the United States the data of the housing price index for September will be published together with the index of Conference Board Consumer Confidence. The data of the Gross Domestic Product (GDP) for the third quarter of Canada they could also generate new momentum.

The securities regulator of China has announced that it will allow property developers to access refinancing. “The new measure, which adds to a series of recent government actions to stabilize the housing market and the economy in general, is intended to allow listed developers to use the capital market to alleviate their financing problemsThe Global Times reported. Following this development, the Shanghai Composite remains on track to end the day more than 2% higher and Hong Kong’s Hang Seng gains nearly 4%.

Furthermore, Global Times commentator Hu Xijin has tweeted that “China could emerge from the shadow of COVID-19 sooner than expected“, providing an additional boost to risk sentiment. Reflecting improving market sentiment, US stock index futures are up 0.2-0.5% early in the morning in Europe .

The EUR/USD has gained traction after closing in negative territory on Monday and is now moving higher towards 1.0400. In her appearance before the European Parliament’s Committee on Economic and Monetary Affairs (ECON) on Monday, the President of the European Central Bank (ECB), Christine Lagarde, reiterated that interest rates will continue to be their main tool to fight inflation. Commenting on the economic outlook, Lagarde noted that it is expected that growth in the euro area will continue to weaken in the remainder of the year and in early 2023.

The GBP/USD it fell below 1.1950 late on Monday but has reversed direction by early Tuesday. At time of writing, the pair is trading in positive territory around 1.2000. The Governor of the Bank of England (BoE), Andrew Baileyis scheduled to deliver a speech at 15:00 GMT.

Monday, the USD/JPY hit its lowest level since late August, at 137.50, as the Japanese yen benefited from safe-haven money flows. As of early Tuesday, the dollar is in a difficult position to pull off a bounce. Reuters reported on Tuesday that 24 of 26 economists recently polled said they expected the Bank of Japan’s next move was to “reverse its ultra-easy monetary policy”.

The news from China have helped the price of Prayed will gain bullish momentum and XAU/USD has already erased all the losses it suffered on Monday. XAU is now up 0.7% on the day to $1,755. The 10-year US Treasury yield remains quiet below 3.7%, allowing risk perception to drive XAU/USD action.

Falling crude oil prices weighed on the Canadian dollar on Monday and the USD/CAD it rose to its highest level in almost three weeks, at 1.3505. With West Texas Intermediate barrels gaining almost 3% early Tuesday, USD/CAD remains under downward pressure and is trading in negative territory around 1.3430. The Canadian economy is projected to grow at an annualized rate of 3.5% in the third quartera little more than the 3.3% registered in the second quarter.

The Bitcoin it started rising and is now up 1.5% on the day at $16,450, having closed the previous four days in negative territory. Supported by market sentiment, the ethereum It is up 3% on the day, trading slightly above $1,200.

Source: Fx Street

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