Forex Today: Geopolitics driving market action ahead of major data releases

This is what you want to know on Wednesday, November 16:

Rising geopolitical tensions helped view the US greenback as a secure haven late Tuesday, permitting the US greenback index to erase most of its every day losses. Whereas market members are assessing the current headlines, US inventory index futures and main foreign money pairs stay comparatively quiet. The European Central Financial institution (ECB) is because of publish its Monetary Stability Report later within the day and Financial institution of England Governor Andrew Bailey is because of testify earlier than the UK Finance Committee. Within the second half of the day, US Retail Gross sales and Industrial Manufacturing for October will probably be on the agenda. Lastly, traders can pay shut consideration to the Canadian Client Worth Index (CPI) knowledge for October.

Information that two Russian missiles have hit Poland close to the Ukrainian border, killing two individuals, prompts him to flee to security. Nonetheless, current developments point out that the missiles that hit Poland might have been launched by Ukrainian forces to fend off different incoming Russian missiles. Ross officers described the Polish incident as an try to impress a direct army conflict between NATO and Russia.

In the meantime, China’s Nationwide Well being Fee (NHC) mentioned on Tuesday that 17,772 new circumstances of COVID-19 had been confirmed nationwide, the best quantity since April 2021. Greater than 1 / 4 of the circumstances are in Guangzhou, which has a inhabitants of 19, the fee added. million, has been deleted.

Euros, US {dollars} It rose to 1.1480 on Tuesday, the best stage since late June however gave up nearly all of its good points to shut at 1.0350. Initially of Wednesday, the pair rose barely however remains to be buying and selling beneath 1.0400. Information launched by Eurostat on Tuesday confirmed that the eurozone financial system grew as anticipated at an annualized price of two.1% within the third quarter.

Britain’s Workplace for Nationwide Statistics reported on Wednesday that its annual client value index rose to 11.1% in October from 10.1 in September. This worth exceeded market expectations of 10.7%. As well as, the core CPI, which excludes unstable meals and vitality costs, was unchanged at 6.5% versus analyst estimates of 6.4%. Regardless of good inflation figures, the pound sterling struggled to search out demand and GBP/USD It was final buying and selling beneath 1.1900 in its slender every day vary.

USDCAD Floating in a decent vary beneath 1.3300 early Wednesday. At its newest assembly, the Financial institution of Canada (BOC) raised rates of interest by 50 foundation factors, stunning the markets, who had been anticipating a 75 foundation level hike. Canada’s annualized client value index is anticipated to stay unchanged at 6.9% in October.

US greenback / Japanese yen It fell beneath 138.00 since late August on Tuesday however recovered on Wednesday. This pair was final buying and selling in optimistic territory just under 140.00.

He went It rose to a three-month excessive of $1,786 on Tuesday, however ended the day beneath $1,780. Because the 10-year US Treasury yield rose greater than 1% through the European morning session, the XAUUSD pair pulled again barely however managed to carry above the $1,770 stage for now.

bitcoin It posted modest every day good points on Tuesday however seems to have misplaced its bullish momentum early Wednesday. It was famous on the time of publication BTCUSD Unchanged at slightly below $16,900. Ethereum It’s buying and selling in a slender vary round $1,250 for the second consecutive day on Wednesday.

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