Forex Today: Massive pre-holiday US data dump, Trump holding back deal, critical UK poll eyed

Yohay Elam FXStreet

Here is what you need to know on Wednesday, November 27:

US data: The calendar is packed ahead of the Thanksgiving holiday. Economists expect the third-quarter GDP (preview) to be confirmed at 1.9% annualized, while Durable Goods Orders (preview) for October have likely dropped in the most important measures. Personal Spending, Personal Income and Core Personal Consumption Expenditure, the Federal Reserve's preferred inflation gauge, is expected to rise modestly. On Tuesday, the Conference Board's Consumer Confidence measure edged lower while housing figures looked upbeat.

Lael Brainard, a Governor at the Fed, reaffirmed the bank's stance that no change is likely in the near future.

Trade: President Donald Trump said that the US and China are in the "final throes" of a trade deal and that he, Trump, is holding it back. Markets have learned to shrug off the headlines. The US dollar is on the rise across the board, but currency movements are limited. Safe havens such as the Japanese yen and gold have been on the back foot.

China: Producer Prices are in deflationary territory, reflecting a slowdown. Industrial profits are also sharply lower, by 9.9% yearly in October.

The Australian dollar has been under pressure after Westpac said that the Reserve Bank of Australia will embark on a QE program.

UK elections: A YouGov poll has joined other surveys in showing a narrowing gap between the Conservatives and Labour, albeit it remains at around ten points. The "mother of all polls" – YouGov's MRP which correctly predicted the hung parliament of 2017 – is due out today at 22:00 GMT.

Cryptocurrencies' volatility has cooled down, with Bitcoin consolidating above $7,000. Ethereum and Ripple are licking their wounds.

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.

GBP/USD advances to three-month peak beyond 1.3600

GBP/USD extends its daily rally and trades at its highest level since mid-May above 1.3600. The US Treasury Department decision to double the sice of liquidity support buyback operations for longer-dated nominal coupon securitiez weighs heavily on the US Dollar and helps the pair push higher. Earlier in the day, the data from the UK showed that annual Consumer Price Index (CPI) inflation picked up to 2.9% in July, meeting estimates, while core CPI rose by 2.6% YoY in July versus 2.5% expected.

EUR/USD surges to 11-week high above 1.1650 after US Treasury announcement

EUR/USD gathers bullish momentum and trades at its highest level since early June above 1.1650 on Wednesday. The US Dollar stays under heavy bearish pressure after the US Treasury announced that it will increase the size of liquidity support buyback operations for longer-dated nominal coupon securities. Later in the day, investors will scrutinize FOMC Minutes for fresh clues on policy outlook.

Gold climbs 2% as US Treasury buyback plan pressures long-term yields

Gold (XAU/USD) enters Wednesday’s American trading hours with decent intraday gains, as a softer US Dollar (USD) and a sharp pullback in long-term US Treasury yields help the metal recover all the previous day’s losses.

Crypto Today: Bitcoin, Ethereum, XRP defend key support as ETF inflows return

Bitcoin’s upside remains capped on Wednesday while the downside appears strongly supported above $64,000. The Crypto King’s early week rebound lost momentum near $65,000 as investors assessed the impact of geopolitical tensions in the Middle East.

WTI Oil climbs as US-Iran standoff keeps Middle East supply risks elevated

West Texas Intermediate (WTI) Oil holds firm on Wednesday, hovering near its highest level in more than three weeks as traders balance Middle East supply risks against rising US crude inventories. At the time of writing, the US benchmark trades around $85.20 per barrel, up nearly 1% on the day.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.