Forex Today: Looking for safety ahead of US CPI
What you need to take care of on Thursday, November 10:
The American dollar benefited from a dismal market mood, recovering some of the ground lost but still down for the week against most major rivals. US stocks reflected the negative sentiment, with Wall Street ending the day in the red. US Treasury yields, however, were little changed ahead of the release of US inflation figures. The Consumer Price Index is expected to have risen in October by 8% YoY, below the previous 8.2% reading.
Global news were mixed. On the one hand, news coming from China weighed on sentiment as the country locked down another district amid the coronavirus spread. On the other, Russia is retreating from Kherson, the only Ukrainian regional capital captured since the invasion began, as Moscow can’t keep supplying troops. Also, news indicated that Russian President Vladimir Putin would not attend the upcoming G-20 summit.
EURUSD finished the day near 1.0010, while GBPUSD is down to 1.1340. Commodity-linked currencies were also sharply down, with AUDUSD trading around 0.6420 and USDCAD up to 1.3512.
Safe-haven assets gave up little ground against the greenback. USDCHF trades at 0.9860, while the USDJPY pair trades around 146.50. Gold trades at around $1,705 a troy ounce, retaining most of its weekly gains.
Crude oil prices, on the other hand, collapsed after the release of US inventories, showing a larger-than-expected build of 3.925 million barrels in the week ended November 4. WTI trades at around $86.00 a barrel.
Cryptos extended their slump amid the FTX collapse. The company is being investigated by the US SEC, while Binance is likely to refrain from rescuing its former rival. BTCUSD trades around $16,660, its lowest since November 2020.
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Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
