Forex Today: Dollar retreats alongside yields as focus shifts to EU inflation data, Powell testimony

Here is what you need to know on Tuesday, November 30:

With trading volumes returning to normal levels following the Thanksgiving break, the dollar gathered strength during the American trading hours on Monday but the sharp decline witnessed in the US Treasury bond yields caused the currency to lose interest. November (preliminary) Consumer Price Index (CPI) data from the euro area will be looked upon for fresh impetus ahead of the Conference Board's November Consumer Confidence Index data from the US. FOMC Chairman Jerome Powell will be testifying before the US Senate Committee on Banking, Housing, and Urban Affairs on coronavirus and CARES Act.

In his prepared opening testimony, Powell will say that factors pushing inflation upward are expected to linger "well into next year." Regarding the Omicron variant, Powell will acknowledge that the new variant is posing downside risks to employment and economic growth while increasing the uncertainty surrounding inflation.

The benchmark 10-year US Treasury bond yield is currently losing more than 2% on the day at 1.46% and US stock index futures trade in the negative territory, suggesting that markets have turned risk-averse in the early European session on Tuesday. Several reports are suggesting that current vaccines are likely to be ineffective against the new coronavirus variant and investors are concerned about a slowdown in global economic activity. 

EUR/USD is edging higher in the early European trading hours on Tuesday and holding above 1.1300. Eurostat is expected to report that the Consumer Price Index in the euro area declined to 3.7% on a yearly basis in November from 4.1% in October.

GBP/USD clings to modest recovery gains above 1.3300. There won't be any high-tier macroeconomic data releases from the UK and the dollar's valuation is likely to continue to drive the pair's action.

USD/CAD continues to push higher as the commodity-sensitive loonie weakens amid falling crude oil prices. Ahead of September Gross Domestic Product data from Canada, the pair is trading at its strongest level since late September near 1.2800. In the meantime, the barrel of West Texas Intermediate is trading below $68 for the first time since September 10.

USD/JPY turned south and is currently testing the 113.00 support area after failing to climb above 114.00. Falling US T-bond yields continue to weigh on the pair.

Gold is having a difficult time rising above $1,800 but the yellow metal's losses remain limited amid renewed dollar weakness.

Cryptocurrencies: Following a three-day rebound, Bitcoin is edging lower and trading below $57,000. Ethereum seems to have gone into a consolidation phase below $4,500.

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 Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD holds higher ground near 1.0200 ahead of EU Sentix

EUR/USD holds higher ground near 1.0200 ahead of EU Sentix

EUR/USD is trading close to 1.0200 in early Europe, as the US dollar pares strong NFP-inspired gains amid an improving mood. Moody’s cut Italy’s credit rating amid political jitters. US-China tensions over Taiwan loom. EU Sentix awaited. 


GBP/USD recaptures 1.2100 amid USD retreat

GBP/USD recaptures 1.2100 amid USD retreat

GBP/USD is edging higher above 1.2100, underpinned by a weaker US dollar amid a positive shift in risk sentiment. Bumper US NFP data ramped up aggressive Fed tightening expectations. UK political woes and a dovish BOE rate hike could cap the pound's upside. 


Gold steadies near $1,770 as DXY pares NFP-led gains ahead of US inflation

Gold steadies near $1,770 as DXY pares NFP-led gains ahead of US inflation

Gold price pares intraday losses at around $1,775 amid the initial Monday morning in Europe. The yellow metal’s latest rebound could be linked to the technical support, as well as the US dollar’s retreat, amid a sluggish start to the key week.

Gold News

If Tezos price clears this significant hurdle, XTZ holders are in for a treat

If Tezos price clears this significant hurdle, XTZ holders are in for a treat

Tezos price shows a steady grind toward its forecasted target. This development comes after a successful breakout from a bullish pattern. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!