The U.S. dollar (USD) experienced a slight decline on Friday, hitting a three-day low as investors anticipated additional interest rate cuts from the Federal Reserve.
What to Watch for on Tuesday, November 25th
The US Dollar Index (DXY) is under some pressure due to varied U.S. Treasury yields, testing the significant support level around 100.00. This comes as investors seem to have renewed expectations for further cuts by the Fed. Key U.S. data to watch includes the weekly ADP employment change, API’s report on retail sales, producer prices, the Conference Board’s consumer confidence index, the FHFA home price index, pending home sales, and U.S. crude oil inventories.
EUR/USD has rebounded slightly, breaking a six-day losing streak and returning to the 1.1550 area, offering a positive outlook for the beginning of the week. The focus will be on Germany’s finalized third-quarter GDP growth rate, alongside speeches from ECB officials Cipollone and Donnelly.
GBP/USD saw a small uptick, maintaining a three-day recovery in the 1.3120 range. The only noteworthy release from the U.K. will be the CBI Distributive Trades report.
USD/JPY quickly bounced back from Friday’s dip and continued its upward trend, lingering near the 157.00 resistance level. Upcoming data from Japan includes the final readings of the coincident index and the economic leading index.
AUD/USD showed strength around the critical 200-day SMA of 0.6460, contributing to Friday’s rally. The next key event in Australia will be the important inflation data set to be released on November 26, influenced by the quarterly construction completion report and a speech from RBA’s Mr. Smith.
WTI crude oil prices climbed to a four-week low of less than $58.00 per barrel as traders considered the potential for peace talks in the Russia-Ukraine situation and the possibility of Fed rate reductions in the near future.
Gold maintained its volatile trend, surpassing the $4,100 per troy ounce mark, influenced by a weaker dollar and expectations of further Fed easing. Silver also recovered, moving past two days of declines and nearing the $51.00 per ounce mark once again.
