Forex Today: Cheering China's olive branch to Trump, Boris extends lead, EUR/USD faces test

Yohay Elam FXStreet

Here is what you need to know on Monday, November 25:

Trade: China will raise penalties for theft of Intellectual Property (IP) in a step that is seen as a gesture toward the US. The topic has been one of the sticking points in trade talks. According to the Global Times, a Chinese outlet, the world's largest economies are close to striking "Phase One" of the deal. Stock markets are on the rise, and the risk-on atmosphere is weighing on the dollar, the yen, and gold.

Hong Kong: Local elections in Hong Kong resulted in overwhelming support for the pro-Democracy camp in a calm atmosphere. President Donald Trump is yet to sign Congress' HK bill into law. Developments in the city-state have played a role in US-Sino relations.

EUR/USD is recovering after Friday's flash Purchasing Managers' Indexes showed that Germany's services sector is decelerating while the improvement in manufacturing still leaves it deep in contraction territory. The German IFO Business Climate is forecast to advance. See EUR/USD Forecast: Further falls due amid downtrend channel downbeat data and trade troubles.

Australian dollar: The Aussie is taking advantage of the news to recover to 0.68, but investors are cautious ahead of two critical speeches from the central bank, especially one from Phillip Lowe, Governor of the Reserve Bank of Australia, on QE.

UK elections: The weekend opinion polls have continued showing double-digit leads for Prime Minister Boris Johnson's Conservatives, with one survey printing a 19-point advantage over Labour. Johnson presented his party's manifesto and vowed to bring the Brexit accord to parliament before Christmas.

Cryptocurrencies have extended their falls, with Bitcoin falling to $6,500. China's crackdown on exchanges has been taking its toll. The drama around Ruja Ruja Ignatova, aka "cryptoqueen" continues.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD struggles to build on recent rebound, holds above 1.1550

EUR/USD trades marginally lower on the day but holds above 1.1550 in the American session, following Thursday's rebound. The pair holds near its intraday high as the US Dollar remains pressured by hopes the Middle East conflict will soon come to an end.

GBP/USD hovers around 1.3400 as investors await war clarity

GBP/USD remains near its daily open, not far from 1.3400, in the second half of Friday's session. The US Dollar lost its previous intraday strength and weakens as investors await clarity on the US-Iran war.

Gold stabilizes above $4,200 as wait-and-see continues

After rising more than 3% on Thursday, Gold (XAU/USD) stabilized around the $4,200 mark in the American session on Friday. The US dollar seesaws between gains and losses, but remains within familiar levels as investors remain skeptical yet hopeful about a resolution to the Middle East conflict.

Crypto Today: Bitcoin, Ethereum, XRP recovery slows amid incessant capital outflows

The cryptocurrency remains in a broader corrective bias on Friday, despite majors such as Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) holding slightly higher than early-week support levels.

SpaceX launches 24% higher at Friday debut

Space Exploration Technologies (SPCX), aka SpaceX, zoomed 24% higher soon after the start of its first IPO trading day on Friday. Shares of the rocket and artificial intelligence (AI) company founded by Elon Musk began trading at about 11:46 am EST and quickly gained speed.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.