What you need to know on Wednesday, November 17:
The dollar strengthened against most major rivals, reaching new 2021 highs against the shared currency. The dollar was partially supported by a bad market mood, then by upbeat data from the United States.
The macroeconomic calendar was a bit busier on Tuesday. The UK released employment figures, which showed that those claiming unemployment benefits fell by $ 14.9 billion a month, while the ILO unemployment rate for the three months to September contracted more than expected to 4.3. %. Average earnings in the same period increased 4.9% excluding bonus and 5.8% including bonus.
The EU published the second estimate of its Gross Domestic Product for the third quarter, which was confirmed at 2.2% quarter-on-quarter. The variation in employment in the same quarter increased 0.9%, exceeding expectations. Finally, the United States released retail sales and industrial production figures for September, which were better than anticipated, further supporting the dollar.
Meanwhile, gas prices in the EU rose more than 12%, as Germany suspended Nord Stream 2 certification. Geopolitical tensions intensified in Europe and rising gas prices would undoubtedly affect inflation.
EUR / USD is trading around 1.1320, while GBP / USD is stable around 1.3430. Commodity-linked currencies lost ground against the dollar, although they remained within familiar levels.
Gold reached a new multi-month high of $ 1,877.15, but fell back to close lower for the second day in a row in the $ 1,850 price zone. Crude prices fell somewhat, with the WTI reaching $ 79.70 a barrel.
Yields on the US Treasury reached new weekly highs, and those on the 10-year bond reached 1.63%, further supporting demand for the dollar.
Global indices struggled to post gains, ending the day on a mixed basis. Wall Street opened with substantial gains but gave in to risk appetite.
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