The US dollar (USD) is feeling the pressure as investors shift to a risk-on approach with a vote on short-term funding for the US government looming. This vote in the U.S. House of Representatives is expected during the night session. If it passes, we might see a renewed appetite for risk, as many investors are now watching for official data that could lead the Federal Reserve to consider rate cuts later in the year.
Here’s what to watch for on Thursday, November 13th.
If the U.S. government secures a short-term financing deal, investors may flock back to riskier assets, likely driving the U.S. Dollar Index (DXY) downward. After a successful funding bill, official data sources will start the slow process of providing lagged data, leading to more fluctuations in the coming weeks as crucial inflation and labor indicators are released.
Meanwhile, EUR/USD is caught in a five-day winning streak, yet bullish momentum for the euro (EUR) is limited. The currency pair remains just below the 50-day exponential moving average (EMA) around 1.1625. The persistent lower highs indicate limited bullish potential, but there’s still the 1.1500 level nearby, which could act as a solid technical floor if buyers return to the market.
On the other hand, GBP/USD is hovering below the 1.3200 mark and testing 1.3100, with traders in the cable market struggling to find reasons to push up the British Pound Sterling (GBP). Recent economic data from the UK hasn’t been promising, and Thursday’s gross domestic product (GDP) report could continue this pattern.
USD/JPY is inching towards a nine-month high above 154.00, poised for its third consecutive month in a bull market unless there’s a shift by the end of November. Global market sentiment seems to have improved, easing some pressure on the Japanese Yen (JPY) against the US dollar, which is set for a long-term climb until mid-2025.
In the realm of crude oil, West Texas Intermediate (WTI) prices dipped below $60.00 per barrel, landing around $58.40 on Wednesday. Energy traders are bracing for the latest inventory figures from the American Petroleum Institute (API), which are anticipated to indicate further increases in U.S. crude oil inventories.
Despite the slightly better global market feelings, gold prices have remained high. Investors are cautiously exploring hedging products as underlying concerns linger. XAU/USD nudged above $4,200 per ounce on Wednesday. Its price pattern was hovering near the 50% retracement level from gold’s previous swing low around the $3,900 mark and the record bid close to $4,400 seen in mid-October.
