Forex Today: Dollar corrects from 2021 highs, risk mood improves to start the week

Here is what you need to know on Monday, November 15:

The dollar registered impressive gains against its rivals last week but seems to have opened on the back foot on Monday with the US Dollar Index retreating to 95.00 area. The cautiously optimistic market mood and falling US Treasury bond yields make it difficult for the greenback to find demand. Investors await the euro area Trade Balance report and the Federal Reserve Bank of New York's Empire State Manufacturing Survey.

The data from China revealed on Monday that Retail Sales expanded by 4.9% on a yearly basis in October, surpassing the market expectation of 3.5%. Additionally, Industrial Production grew by 3.5% in the same period, compared to analysts' estimate of 3%. Despite the upbeat data releases, the Shanghai Composite Index is trading flat on the day. The Nikkei 225 is up 0.5% and US stocks futures are posting modest gains in the early European session.

According to Xinhua News Agency, US-China Business Council urged the US to cut tariffs and said tariff costs compounded by inflation was posing a significant burden to the US economy. Later in the day, US President Joe Biden and Chinese President Xi Jinping will have a virtual meeting.

EUR/USD touched its lowest level since July 2020 at 1.1432 on Friday and seems to have gone into a consolidation phase above 1.1450 on Monday. In the absence of high-tier macroeconomic data releases, the pair's action could remain subdued for the remainder of the day.

GBP/USD trades in the positive territory above 1.3400 at the start of the week. The UK and the EU will engage in talks this week to try and resolve the issues surrounding Brexit's Northern Ireland protocol. 

USD/JPY fluctuates in a relatively tight range around 114.00. Bank of Japan (BOJ) Governor Haruhiko Kuroda said earlier in the day that they won't wind down or abandon the easy monetary policy even if consumer inflation in Japan climbs to 1%. Meanwhile, the data from Japan showed that the Gross Domestic Product contracted by 0.8% on a quarterly basis in the third quarter.

Gold gained more than 2% last week with the precious metal finding demand as an inflation hedge. XAU/USD is edging lower on Monday but staying afloat above $1,850.

Cryptocurrencies: Bitcoin managed to register modest gains over the weekend and trades around $65,000 on Monday. Ethereum pushed lower in the previous couple of days but seems to have found support around $4,500. As of writing, ETH was up 1.7% on the day at $4,700.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD stays pressured as shares slump on Powell's hawkish rhetoric

EUR/USD bears stay in control as Asian shares take a plunge. The Fed's hawkishness is reverberating throughout global markets, weighing on risk-sensitive currencies. The US dollar is bid in Asia and risk aversion remains in play.


GBP/USD refreshes monthly low under 1.3450 as Fed, Brexit and UK politics favor bears

GBP/USD takes offers to renew monthly low, down for the second consecutive day. EU to sue UK over deal in bonkers, delay in Brexit talks over NI. Sue Grey's report awaited as UK PM Johnson defends drinks party, animal evacuation from Afghanistan adds to the problems.


Gold bears await US Q4 GDP for the next leg lower Premium

Gold price is licking its wounds near weekly lows of $1,813, as bears take a breather in the aftermath of the Fed decision while waiting for the US advance Q4 GDP and Durable goods data. The US economy is likely to have regained steam in Q4, 2021.

Gold News

Why Bitcoin price could form a bottom following the January 28 options expiry

Bitcoin open interest volume by expiry date indicates a majority of bearish sentiment in the market. BTC options worth roughly $2 billion will expire by the end of this week. However, options expiry has correlated with massive liquidations and price crashes in the past.

Read more

US GDP Preview: Inflation component could steal the show, boost dollar. Premium

More than double than pre-pandemic – the 5% annualized growth rate expected for the fourth quarter is a reason to be cheerful. That may boost the dollar, but not stocks, which are wary of tighter monetary policy from the Fed.

Read more