Forex Today: US Dollar Bounces into Week Start as Risk Appetite Fades

This is what you need to know to trade today monday november 14:

Following the strong recovery in risk appetite in the second half of the previous week, markets seem to have turned cautious as the new week begins as investors assess the latest developments. The Dollar Index rebounds after losing nearly 4% last week and US stock index futures are trading in negative territory. Eurostat will publish the data of Industrial Production for September and high-impact macroeconomic data will not be published on the US economic docket. However, investors will pay close attention to comments from US Federal Reserve officials, including Vice Chairman Lael Brainard and New York Fed President John Williams.

Commenting on the reaction to softer October Consumer Price Index (CPI) data, Federal Reserve Governor Christopher Waller said markets were “way ahead of the game” adding that rates will not fall until there is “clear and strong” evidence that inflation is falling. For her part, San Francisco Fed President Mary Daly advised markets to stop thinking about the pace of rate hikes and start thinking about the level.

On November 12, the number of daily coronavirus cases in China rose to almost 15,000, compared to 11,950 on November 11. Explaining the changes they have made to coronavirus restrictions, China’s top health officials noted that they weren’t “relaxing the rules” but perfecting them“It is necessary to maintain the strategic focus and scientifically and accurately carry out epidemic prevention and control work,” China’s National Health Commission (NHC) said in a statement on Sunday.

The EURUSD gained over 100 pips on Friday and recorded its highest weekly close since the last week of June, above 1.0300. The pair appears to have entered a consolidation phase and is now trading in negative territory above 1.0300.

The GBPUSD reached its highest level since August 26, at 1.1855 late on Friday, posting impressive weekly gains. The pair is making a downward correction and is now down 0.7% on the day around 1.1750.

The USDJPY closed for the fourth consecutive week in negative territory and fell on Friday below 140.00 for the first time in 10 weeks. “Bank of Japan Governor Haruhiko Kuroda stated on Monday that the yen’s sharp weakening appears to have stopped, thanks in part to government intervention in the foreign exchange market, noting that he did not expect the dollar’s “lone force” to last indefinitely. USDJPY is currently trading in a tight range near 139.50.

The Prayed took advantage of risk flows and broad US dollar weakness last week and gained more than 5%. XAUUSD remains lower early Monday and is trading around $1,760.

The Bitcoin extended its fall over the weekend and ended the week with a 22% loss, to $16,300, as investors reacted to the latest developments surrounding the FTX crash. In the same way, Ethereum lost more than 20% last weekbut seems to have stabilized around $1,200, at least for now.