Forex Today: Markets doubt US-Sino progress, Powell sees glass filling, GBP/USD spooked by poll

Yohay Elam FXStreet

Here is what you need to know on Tuesday, November 26:

Trade: China's Xinhua and Global Times have reported that Sino-American negotiators have reached a consensus about a deal that includes a rollback of tariffs, albeit both sides have differences in the duties. Both sides have spoken on the phone and agreed to remain in contact. While stock futures are higher, currencies are little-changed, with only a modest rise in 109.

Fed: Jerome Powell, Chairman of the Federal Reserve, has expressed optimism about the US and economy and satisfaction from the current monetary policy. The "glass is more than half full."

The Conference Board's Consumer Confidence gauge for November is set to show improvement as the shopping season kicks off. Housing prices and the US Goods Trade Balance are also of interest. See Consumer Confidence Preview: Rising confidence supports the economy

GBP/USD's advance stalled after one opinion poll showed a narrowing of the gap between the Conservatives and Labour to only 7%. Another survey published on the weekend printed a whopping 19% difference. The elections are held on December 12.

AUD/USD is awaiting a speech from Phillip Lowe, Governor of the Reserve Bank of Australia, on the topic of Quantitative Easing.

NZD/USD is holding onto gains made late on Monday third-quarter Retail Sales in New Zealand jumped by 1.6%, better than expected.

Gold is consolidating above $1,450 and oil prices are hovering around $58.

Prices of cryptocurrencies have recovered after the sell-off, with Bitcoin settling above $7,200.

More Dollar Bulls - 3 Things to Be Thankful for

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.

AUD/USD climbs toward 0.7000 after strong China data dump

AUD/USD attracts follow-through buyers for the second straight day on Monday, extending last week's recovery toward 0.7000 in Monday's Asian trading. Strong Chniese Q3 GDP and activity data for September strengthen the pair's advance, following RBA Assistant Governor Chris Kent's hawkish remarks.

USD/JPY struggles near 158.00 amid hawkish BoJ, subdued USD

USD/JPY remains defensive near 158.00 in the Asian session on Monday, as the US Dollar remains depressed near a two-week low amid the recent decline in US bond yields. Furthermore, looming intervention risks underpin the Japanese Yen and weigh on the pair amid BoJ Governor Kazuo Ueda's hawkish remarks. However, Fed rate-hike bets and geopolitical uncertainties could limit USD losses and the major.

Gold rangebound as easing October Fed bets clash with firm December hike pricing

Gold attracts some buyers at the start of a new week, though it lacks bullish conviction and remains below the $4,200 mark. US Federal Reserve Chair Kevin Warsh’s unwillingness to provide any cues on further policy moves led to a reduction in odds for policy tightening later this month. Moreover, the recent sharp retracement slide in US government bond yields from multi-year highs, which dragged the US Dollar to a two-week low, acts as a tailwind for the bullion.

Cardano risks 15% downside as retail demand, bullish momentum wane

Cardano (ADA) is trading above $0.2200 at press time on Monday, holding steady after a 12% decline the previous week. The altcoin is losing retail interest as the notional value of active ADA futures positions declines. The technical outlook for ADA suggests a downside bias following the bearish breakout below a near-term support trendline last week.

What to expect in the week ahead

Investors are still digesting last week’s price action as we start a new week. US stocks sold off sharply, with the Swiss and UK indices attracting inflows as tech sold off. Sovereign bonds, particularly Treasuries, rallied and acted as a safe haven as the AI trade suffered another bout of volatility.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.