What you need to know on Thursday, November 11:
Risk-aversion took over financial markets and the dollar made the most out of it. The catalyst was US inflation, as the US annual Consumer Price Index soared to its highest in three decades, hitting 6.3% YoY in October. Stocks took a turn for the worse as yields soared, reflecting mounting concerns of further tightening in the US.
Also, Federal Reserve Bank of San Francisco President Mary Daly said noted that even though it’s temporary, high inflation hurts. She added that it would be premature to change the pace of monetary policy tightening.
The dismal mood was exacerbated by news indicating that the Chinese giant Evergrande stands on the verge of default. Some bondholders have not received coupon payments by the end of the 30-day grace period on coupon payments of more than $148 million on its April 2022, 2023 and 2024 bonds at the close of Asia business, and market talks hint at DMSA preparing bankruptcy proceedings against the Evergrande Group. With that in mind, it's possible that Asian shares follow their overseas counterparts on their way down.
The EUR/USD pair settled below 1.1500, its lowest since July 2020. GBP/USD nears 1.3400 as investors await news on the Brexit front.
The AUD/USD pair is down to the 0.7330 region, with losses partially offset by soaring gold prices, as the bright metal trades around $1,840 a troy ounce after reaching a multi-month high of 1,868.54. USD/CAD flirts with 1.2500 as crude oil prices gave up to the ruling dismal mood, with WTI ending the day at $81.10 a barrel.
Bitcoin smashes through $69,000 as US inflation hits its highest point in 30 years
Like this article? Help us with some feedback by answering this survey:
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
Editors’ Picks
EUR/USD stays below 1.0800 after upbeat US data
EUR/USD stays under bearish pressure and trades slightly below 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold clings to strong daily gains above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.