The U.S. dollar (USD) continued to slide, hitting a new monthly low as investors reacted to disappointing ADP jobs data. This new information sparked renewed speculation that the U.S. Federal Reserve might opt for additional easing measures. At the same time, there’s increasing optimism surrounding a potential resolution to the ongoing U.S. government shutdown.
What to watch for on Wednesday, November 12th.
On Tuesday, selling pressure returned, driving the U.S. dollar index (DXY) down to around 99.30, despite a minor uptick in U.S. Treasury yields and the ongoing chatter about potential rate cuts from the Fed this year. The regular MBA mortgage applications are set to be released prior to the API’s weekly report on U.S. crude oil inventories. A number of officials, including Mr. Barber, Mr. Williams, Mr. Paulson, Mr. Waller, Mr. Bostic, and Mr. Millan, are also slated to speak.
The EUR/USD pair climbed to multi-day highs, briefly surpassing the significant 1.1600 level as it continues its recovery. Notably, Germany’s latest inflation figures are anticipated, alongside speeches from the ECB’s Schnabel and De Guindos.
GBP/USD saw a slight rise, just enough to keep its upward trend intact as it approached the 1.3180 region. Meanwhile, BoE’s Pill will be speaking at a rather quiet meeting across the English Channel.
For USD/JPY, volatility persists, remaining at the upper end of its recent range close to 154.00. In Japan, attention will be on machine tool orders and the Reuters Tankan Index data.
AUD/USD had difficulty extending the strong rebound it showed on Monday, remaining just below the 0.6540 mark. Upcoming figures for mortgage and residential investment loans in Australia are expected.
WTI crude prices reached a six-day high around $61.00 per barrel as traders assessed ongoing oversupply issues and the possibility of additional sanctions on Russian oil.
Gold managed its third consecutive day of gains on Tuesday, nearing the $4,150 per ounce mark, propelled by expectations of a Fed rate cut and a weaker U.S. dollar. Silver prices also continued their recovery for the fifth day, rising above $51.00 per ounce, marking a three-week high.
