Here's what you need to know on Tuesday, November 26th.
Following the bearish moves seen earlier in the week, the US dollar (USD) recovered modestly early on Tuesday. The US economic calendar includes September's home price index, October's new home sales statistics, and November's Conference Board Consumer Confidence Index. The US Federal Reserve will release the minutes of its November policy meeting later that day.
USD price this week
The table below shows the percentage change of the US dollar (USD) against major currencies this week. The US dollar was the strongest against the Canadian dollar.
| USD | EUR | GBP | JPY | CAD | australian dollar | new zealand dollar | swiss franc | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.53% | -0.13% | -0.05% | 1.08% | 0.28% | 0.28% | -0.49% | |
| EUR | 0.53% | 0.23% | -0.11% | 1.02% | 0.74% | 0.23% | -0.54% | |
| GBP | 0.13% | -0.23% | -0.35% | 0.80% | 0.49% | 0.00% | -0.77% | |
| JPY | 0.05% | 0.11% | 0.35% | 1.13% | 0.77% | 0.40% | -0.25% | |
| CAD | -1.08% | -1.02% | -0.80% | -1.13% | -0.64% | -0.78% | -1.57% | |
| australian dollar | -0.28% | -0.74% | -0.49% | -0.77% | 0.64% | -0.50% | -1.27% | |
| new zealand dollar | -0.28% | -0.23% | -0.00% | -0.40% | 0.78% | 0.50% | -0.77% | |
| swiss franc | 0.49% | 0.54% | 0.77% | 0.25% | 1.57% | 1.27% | 0.77% |
The heat map shows the percentage change between major currencies. The base currency is selected from the left column and the quote currency is selected from the top row. For example, if you select USD from the left column and move along the horizontal line to Japanese Yen, the percentage change displayed in the box represents USD (base)/JPY (estimate).
News that Donald Trump has nominated fund manager Scott Bessent as Treasury secretary sparked a sell-off in the US dollar early Monday. Subsequently, reports that Israel and Lebanon were nearing a ceasefire agreement increased risk sentiment, further adding weight to the US dollar. But on Tuesday, President Trump announced that in one of his first executive orders, he would impose a 25% tariff on all products entering the country from Canada and Mexico, and an additional 10% tariff on products from China. In response, the market appears to have taken a cautious stance. At the time of writing, the USD index was in positive territory above 107.00, and US stock index futures were flat.
euro/usd The dollar benefited from selling pressure on the U.S. dollar on Monday, posting daily gains. It is struggling to find a foothold in the European morning on Tuesday, trading below 1.0500.
gold It came under heavy pressure amid the easing of geopolitical tensions on Monday, falling more than 3%. XAU/USD consolidated losses above $2,600 early Tuesday.
After crossing 1.2600, GBP/USD It lost its bullish momentum and ended the week with little change. The currency pair continued to weaken in the lead-up to the start of European trading, and was last trading around 1.2550.
US dollar/Canadian dollar It soared in response to President Trump's tariff remarks and reached its highest level since April 2020, exceeding 1.4150. The pair has shown a downward correction and is trading around 1.4100 in the European morning. Similarly, the Mexican peso remained under pressure against the US dollar on Tuesday. US dollar/Mexican peso It rose more than 1% on the day to 20.5875.
USD/JPY It posted a modest loss on Monday. The pair remained relatively quiet on Tuesday, fluctuating within a narrow band around 154.00.
Frequently asked questions about risk sentiment
In the world of financial terminology, two terms are widely used: “risk-on” and “risk-off” to refer to the level of risk that an investor is willing to accept during a given period of time. In a “risk-on” market, investors are optimistic about the future and are more willing to buy risky assets. In a “risk-off” market, investors begin to “play it safe” out of fear for the future, so they buy low-risk assets that are guaranteed to yield a return, even if it is a relatively small amount.
Typically, during “risk-on” periods, the stock market rises, and so do the values of most commodities, except gold. This is to benefit from positive growth prospects. The currency of a country that is a large exporter of primary products will appreciate due to increased demand, and the virtual currency will appreciate. In a “risk-off” market, bonds, especially major government bonds, rise, gold shines, and safe-haven currencies such as the Japanese yen, Swiss franc, and US dollar all profit.
Minor currencies such as the Australian dollar (AUD), Canadian dollar (CAD), New Zealand dollar (NZD), ruble (RUB) and South African rand (ZAR) all tend to rise in “riskier” markets. This is because the economies of these currencies rely heavily on commodity exports for growth, and commodity prices tend to rise during risk-on periods. High economic activity This is because investors are anticipating an increase in demand for raw materials in the future.
The major currencies that tend to appreciate during “risk-off” periods are the US dollar (USD), the Japanese yen (JPY), and the Swiss franc (CHF). The U.S. dollar is the world's reserve currency, because investors buy U.S. government bonds in times of crisis, and is considered safe because the world's largest economy is unlikely to default. The yen is due to increased demand for Japanese government bonds, and since a high percentage of the value is held by domestic investors, there is little chance of a fire sale of government bonds even in times of crisis. The Swiss Franc is a strong currency because Switzerland's strict banking laws provide investors with greater capital protection.
