This is what you need to know to trade today Monday, November 22:
The dollar is firm early Monday after outperforming its rivals last week. The US Dollar Index (DXY) is moving sideways above 96.00 as investors await the Federal Reserve Bank of Chicago’s National Activity Index and existing home sales data for October. The risk climate appears to be improving at the beginning of the week, but market participants remain concerned about the possible imposition of lockdowns related to the coronavirus in Europe.
The optimistic comments of the officials of the Fed gave the dollar a boost before the weekend. Federal Reserve Vice Chairman Richard Clarida said it might be appropriate in December to discuss accelerating the pace of reduction in asset purchases. In a similar note, the Fed governor, Christopher Waller, argued that the entity could begin to reduce its bond purchase program by $ 30 billion as of January and open the door to a rate hike from April.
The Shanghai Composite Index is up more than 0.5% despite some cautious remarks on the economic outlook. Liu Shijin, an adviser to the People’s Bank of China (PBOC), said on Monday that the Chinese economy could enter a period of “near stagflation” with relatively slow growth and excessively high producer price inflation. Meanwhile, US stock index futures post modest gains, suggesting that the major Wall Street indices could open on a firm footing, while the 10-year US Treasury yield it remains above 1.5% after the drop on Friday.
The EUR/USD it is still struggling to pull off a convincing bounce and is trading below 1.1300. Later in the day, the European Commission will release preliminary consumer confidence data for November.
The GBP/USD it fell sharply on Friday and wiped out most of its weekly gains. The pair remains relatively quiet at the 1.3450 zone on Monday, but the lack of progress in the Brexit negotiations on the Northern Ireland protocol is not allowing the British pound to find demand.
The oro It fell towards the lower end of its weekly range on Friday and broke below $ 1,850 during Asian trading hours on Monday. XAU / USD is likely to react to fluctuations in US Treasury yields in the absence of high-level data releases.
The USD/JPY it is trading in a very narrow band above 114.00 on Monday. Hours earlier, the Japanese government announced on Friday that the Cabinet approved a new fiscal stimulus package with spending worth 55.7 trillion yen.
The AUD/USD it remains afloat in positive territory around 0.7250 and the NZD / USD extends sideways above 0.7000. The risk flows appear to be helping the Australian dollar and kiwi to remain resilient against the dollar.
The USD / CAD consolidates last week’s gains above 1.2600 as the oil sell off appears to be taking a break on Monday. After losing more than 4% on Friday, a barrel of West Texas Intermediate (WTI) is trading flat just below $ 76.00 at the start of the European session.
cryptocurrencies: Bitcoin rose to $ 60,000 on Saturday, but failed to gather enough bullish momentum to advance beyond that level. At time of writing, BTC / USD is down more than 2% to $ 57,300. Following a two-day bounce, Ethereum turned south on Sunday and continues to push lower towards $ 4,000 on Monday.
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