Forex Today: Dollar extends slide, risk appetite prevails


During the Asian session, New Zealand will release trade data, and the Reserve Bank of Australia the minutes of its latest meeting. Later in the day, inflation data from Canada is due, and the Federal Reserve will release the FOMC minutes.

Here is what you need to know on Tuesday, November 21:

The US Dollar Index (DXY) dropped further and fell to 103.45, reaching its lowest level since late August. Risk appetite and lower Treasury yields weighed on the Greenback. In the short term, the US Dollar remains vulnerable even though the US economy is growing while the Eurozone and other economies are nearing recession.

Regarding economic data, Tuesday's data from the US includes Existing Home Sales and the Chicago Fed National Activity Index. The Federal Reserve (Fed) will release the minutes of its latest meeting.

EUR/USD extended its gains above 1.0900 to the 1.0950 area. The bias is to the upside, but technical indicators show overbought conditions that could point to consolidation before another leg higher.

GBP/USD rose above 1.2500, surpassing the 100-day Simple Moving Average (SMA). The pair maintains a bullish bias due to the weaker US Dollar. On Tuesday, Bank of England (BoE) Governor Bailey and members of the Monetary Policy Committee will face lawmakers to discuss the Monetary Policy Report.

USD/JPY also continued its downward trend for the third consecutive day, accumulating a decline of more than 300 pips. The pair fell towards 148.00 and remains under pressure.

AUD/USD jumped, breaking above 0.6550 to fresh monthly highs. The next significant resistance stands at 0.6600. Reserve Bank of Australia (RBA) Governor Michele Bullock will deliver a speech on Tuesday. The RBA will also release the minutes of its latest meetings.

USD/CAD posted modest gains, with the Canadian Dollar being among the worst performers, even despite crude oil's rally. The pair is facing resistance at 1.3770 and is supported by the 55-day SMA at 1.3660. Canadian data due on Tuesday will show if inflation continues to approach the 2% target or if fresh pressures emerge. The Federal Government will release the Fall Economic Statement.

Canada CPI Preview: Forecasts from six major banks, inflation to decelerate further


 


Like this article? Help us with some feedback by answering this survey:

Share: Feed news

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.

Recommended content


Recommended content

Editors’ Picks

EUR/USD inches higher to near 1.0900; next barrier at four-month highs

EUR/USD inches higher to near 1.0900; next barrier at four-month highs

EUR/USD advances for the second consecutive day, trading around 1.0900 during early Tuesday's European session. The analysis of the daily chart shows a weakening of a bullish trend, as the pair is positioned below an ascending channel.

EUR/USD News

GBP/USD bullish potential seems intact while above 1.2900 mark

GBP/USD bullish potential seems intact while above 1.2900 mark

GBP/USD lacks firm intraday direction and oscillates in a narrow range on Tuesday. The fundamental backdrop and the technical setup seem tilted in favor of bulls. A convincing break below the 1.2900 mark is needed to negative the positive bias.

GBP/USD News

Gold's struggle with $2,400 extends amid market caution

Gold's struggle with $2,400 extends amid market caution

Gold price is making another attempt to reclaim $2,400 on a sustained basis, replicating the moves seen during Monday’s Asian trading. Gold price appears to be benefiting from a typical market caution and renewed China’s economic worries and ahead of key US earnings reports.

Gold News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin finds support around the $67,000 level

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin finds support around the $67,000 level

Bitcoin and Ripple prices are holding steady around their respective weekly and daily support levels, hinting at an imminent rally. Meanwhile, Ethereum is encountering resistance at the $3,530 mark; a decisive close above this level would signal a bullish breakthrough.

Read more

Earnings review

Earnings review

In recent years, the focus has been on the Magnificent 7, particularly Nvidia’s monster earnings reports, which have dominated the market. While Nvidia’s results are still extremely important for overall sentiment, there is a hope that sales growth and revenues can pick up across a broad range of global markets and sectors.

Read more

Forex MAJORS

Cryptocurrencies

Signatures