Forex Today: Mood improves, dollar advances

Valeria Bednarik FXStreet

What you need to know on Tuesday, November 30:

Fears receded on Monday after panic dominated financial markets on Friday when stocks markets collapsed following the announcement of a new covid variant discovered in South Africa named Omicron. However, the market’s reaction may have been exacerbated by thin market conditions due to the Thanksgiving holiday in the US.

Anyway, up to today, the market knows little about the new strain. However, Pfizer announced its testing its vaccine on a new variant, while Moderna announced it would have a new shot ready for early on 2022 if needed. Also, US President Joe Biden made a press conference to update the country on the matter. Biden said that the new strain is of concern but should not trigger panic, adding that lockdowns are not required at the time being.

Stocks fell in Asia, but European and American indexes posted gains, reflecting the better mood. US government bond yields ticked higher, with the 10-year Treasury note yielding 1.53% ahead of Wall Street’s close.

European Central Bank (ECB) governing council member Pablo Hernandez de Cos said this Monday that European policymakers aim to avoid the premature tightening of the monetary policy, repeating that high inflation could be expected to be transitory, despite being stronger and more persistent than anticipated a few months ago. German inflation printed at 6% YoY in November, according to preliminary estimates.

The greenback trades mostly higher against its major rivals, although volatility was limited. The EUR/USD pair trades around 1.1260, while GBP/USD is below the 1.3300 threshold. USD/CAD is at 1.2760, while the AUD/USD pair is close to the year low at 0.7105. Safe-haven currencies bounced modestly, with the USD/JPY pair now at 113.80.

Gold edged modestly lower after flirting with the 1,800 level, now trading at around $1,782 a troy ounce. Crude oil prices also ticked lower, with the barrel of WTI currently at $70.40.

XRP price on edge of cliff as Ripple faces imminent collapse

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

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

XRP struggles around $1.40 despite institutional inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.