Here is what you need to know on Tuesday, November 29:

Following Monday's risk-off action, the market mood seems to have improved early Tuesday with major Asian equity indices registering impressive daily gains. The US Dollar Index, which rose more than 0.5% on Monday, turned south with the US Dollar struggling to find demand as a safe haven. European Commission will release the business and consumer sentiment surveys later in the session. Germany's Destatis will publish the November inflation figures and the US economic docket will feature September Housing Price Index data alongside the Conference Board's Consumer Confidence Index. Third-quarter Gross Domestic Product (GDP) data from Canada will also be looked upon for fresh impetus.

China's securities regulator announced that it will allow real-estate developers to access refinancing. "The fresh move, adding to a flurry of recent government actions to stabilize the housing market and the economy at large, is meant to let listed developers use the capital market to ease their funding woes," Global Times reported. Following this development, the Shanghai Composite remain on track to end the day more than 2% higher and Hong Kong's Hang Seng gains nearly 4%.

Additionally, Global Times commentator Hu Xijin tweeted out "China may walk out of the shadow of COVID-19 sooner than expected," providing an additional boost to risk sentiment. Reflecting the improving market mood, US stock index futures are up between 0.2% and 0.5% in the early European morning.

EUR/USD gained its traction after having closed in negative territory on Monday and was last seen edging higher toward 1.0400. While testifying before the Committee on Economic and Monetary Affairs (ECON) of the European Parliament on Monday, European Central Bank (ECB) President Christine Lagarde reiterated that interest rates will remain their main tool for fighting inflation. Commenting on the economic outlook, Lagarde noted that growth in the Eurozone was expected to continue to weaken for the remainder of this year and the beginning of 2023.

GBP/USD dropped below 1.1950 late Monday but reversed its direction early Tuesday. At the time of press, the pair was trading in positive territory at around 1.2000. Bank of England (BOE) Governor Andrew Bailey is scheduled to deliver a speech at 1500 GMT.

USD/JPY touched its lowest level since late August at 137.50 on Monday as the Japanese Yen capitalized on safe-haven flows. With the US Dollar staying on the back foot early Tuesday, the pair is having a hard time staging a rebound.  Reuters reported on Tuesday that 24 of 26 economists that were polled recently said that they were expecting the Bank of Japan's next policy to be "unwinding its ultra-easy monetary policy."

New from China helped Gold price gather bullish momentum and XAU/USD already erased all losses it suffered on Monday. The pair was last seen rising 0.7% on the day at $1,755. The benchmark 10-year US Treasury bond yield stays quiet below 3.7%, allowing the risk perception to drive XAU/USD's action.

Falling crude oil prices weighed on the Canadian Dollar on Monday and USD/CAD climbed to its highest level in nearly three weeks at 1.3505. With the barrel of West Texas Intermediate gaining nearly 3% early Tuesday, USD/CAD stays under bearish pressure and trades deep in negative territory at around 1.3430. The Canadian economy is forecast to grow at an annualized rate of 3.5% in the third quarter, up slightly from 3.3% recorded in the second quarter.

Bitcoin started to edge higher and was last seen gaining 1.5% on the day at $16,450 after having closed the previous four trading days in negative territory. Supported by the upbeat market mood, Ethereum is up 3% on the day, trading slightly above $1,200.

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

AUD/USD remains unnerved above 0.6900 amid US-Sino woes, Aussie data

AUD/USD remains unnerved above 0.6900 amid US-Sino woes, Aussie data

AUD/USD is holding steady above 0.6900, consolidating the bounce amid the upbeat Australian Retail Sales data. The Aussie remains unnerved by the looming US-China tensions, with Chinese stocks down over 1% so far. Pre-RBA anxiety also keep AUD bulls on the edge. 

AUD/USD News

USD/JPY consolidates the rally below 132.50 on BoJ nominaton reports

USD/JPY consolidates the rally below 132.50 on BoJ nominaton reports

USD/JPY is consolidating the opening gap rally that hit a high near 132.50 in Asia this Monday. The Japanese yen remains heavy amid a Bloomberg report that Masayoshi Amamiya as the next BoJ Governor would be bullish for bonds and weigh on the yen and local financial stocks.

USD/JPY News

Gold exposes to $1,850 as yields strengthen amid hawkish Fed bets

Gold exposes to $1,850 as yields strengthen amid hawkish Fed bets

Gold price (XAU/USD) has resumed its downside journey after a short-lived pullback to near $1,870.00 in the Asian session. The precious metal is exposed to the critical support of $1,850.00 amid a sheer decline in US government bonds. The 10-year US Treasury yields have escalated their recovery to near 3.57%.

Gold News

Why Bitcoin is still in a bear market and what this means for BTC price

Why Bitcoin is still in a bear market and what this means for BTC price

Bitcoin is currently in a bear market, according to analysts, despite the massive rally of January. The selling pressure on the asset has reduced, with miner inflow to exchanges declining to multi-year lows. Despite the bullish catalysts, analysts are waiting a year post the 2022 bear market rally to conclude that the bearish phase is now behind us. 

Read more

Week Ahead – RBA next to hike

Week Ahead – RBA next to hike

After the past week’s central bank bonanza, things will quieten down in the coming days, although not completely, as the Reserve Bank of Australia will keep the rate hike theme running.

Read more

Forex MAJORS

Cryptocurrencies

Signatures