Forex Today: Trump's trade deal in trouble, Boris bounces back, EUR/USD awaits ECB Minutes

Yohay Elam FXStreet

Here is what you need to know on Thursday, November 21:

Trade: Chinese Vice Premier Liu He has said that he is cautiously optimistic about reaching Phase One of a deal but confused as to what the US wants. Relations between the world's largest economies worsened when the Senate passed a bill supporting protesters in Hong Kong. President Donald Trump may sign the bill into law as soon as today. CNBC's Kayla Tausche reported that the trade deal is in trouble. Markets remain under some pressure.

Fed: The Federal Reserve's meeting minutes from the October meeting have shown that the most judged that barring a material reassessment of the outlook, rates are at an appropriate level. Overall, the document was in line with the bank's message that it remains on hold. See FOMC minutes dash hope for future rate cuts, trade deal worries send equities plunging

UK Elections: The opposition Labour Party will unveil its manifesto today, in which it will criticize billionaires and offer steps to tackle inequality. Prime Minister Boris Johnson has hinted at tax relief on Wednesday. Opinion polls continue showing the Conservatives in the lead, boosting GBP/USD.

Impeachment: US Ambassador to the EU and Republican donor Gordon Sondland said that Trump and other senior officials were all involved in a quid-pro-quo deal with Ukraine. His bombshell testimony has yet to move markets.

Euro-zone: The German finance ministry's monthly report noted weakening global economic momentum. The European Central Bank releases its meeting minutes from former President Mario Draghi's last meeting at the helm.

USD/CAD has stabilized above 1.33 after Canadian inflation figures were roughly within expectations. Stephen Poloz, Governor of the Bank of Canada, speaks today. Oil prices have stabilized after advancing on Wednesday.

US indicators: The US economic calendar features the Philly Fed Manufacturing Index and Existing Home Sales. See Existing-Home Sales Preview: Sales follow mortgage rates

Cryptocurrencies remain on the back foot with Bitcoin clinging to $8,000.

More Trump Impeachment: Markets will not like any replacement

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 pops to three-week highs above 1.3400

GBP/USD accelerates its advance and surpasses the key 1.3400 barrier on Wednesday. That said, Cable clinches new multi-week tops on the back of the resurgence of the selling interest in the Greenback despite persistent tensions in the Middle East.

EUR/USD reverses losses, targets 1.1450

EUR/USD trades with decent gains north of the 1.1400 hurdle in the latter part of Wednesday’s NA session. The fresh offered stance in the US Dollar allowed the pair to revert the initial drop and refocus on the upside despite the hawkish tone from the FOMC Minutes and persistent geopolitical tensions.

Gold edges higher on softer USD; remains below $4,100

Gold trades with a positive bias during the Asian session on Thursday and looks to build on the overnight bounce from $4,020, or a one-week low. Minutes of the June FOMC meeting showed an evenly divided debate over the monetary policy outlook and failed to impress the US Dollar bulls, which is seen supporting the bullion. However, fresh US-Iran tensions trigger a sharp recovery in Oil prices, reviving inflationary concerns and reinforcing bets for at least one Fed rate hike in 2026. This should cap the non-yielding yellow metal.

Dogecoin Forecast: DOGE risks sliding below $0.07 despite returning retail interest

Dogecoin (DOGE) edges lower toward support at $0.07 at the time of writing on Wednesday. The meme coin reflects a broader sell-off in the crypto market, primarily attributed to uncertainty over tensions in the Middle East. Iran launched attacks on American military bases in the Middle East on Wednesday in retaliation for attacks by the United States (US) on several places in Iran.

2.50%: Why the Kiwi's first hike in three years is a wager on a number nobody can see

The Reserve Bank of New Zealand (RBNZ) raised the Official Cash Rate (OCR) by 25 basis points to 2.50% at 02:00 GMT on Wednesday, its first hike in three years and the moment the bank that cut deeper than any G10 peer last cycle turned to face the other way.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance.