Forex Today: US Dollar could benefit from risk-averse headlines

Valeria Bednarik FXStreet

What you need to take care of on Friday, November 25:

The greenback extended its weekly decline on Thursday, settling near its lows against most of its major rivals. Activity pared after London’s close, as US markets were closed due to the Thanksgiving holiday.

Generally speaking, the mood was upbeat as Asian and European indexes closed in the green. However, some worrisome headlines may soon trigger a flip in investors’ sentiment. On the one hand, tensions between Russia and the EU continue and are on their way to escalate, as European Commission President Ursula von der Leyen announced they are working full speed on a 9th sanctions package on Moscow.

On the other hand, China reported record coronavirus contagions in the country, while a state-run news channel reported that Beijing and other cities are going back into lockdown. Financial markets may turn risk-averse on renewed concerns that Chinese restrictions could interrupt global commerce, trigger fresh supply-chain issues, and result in another inflationary spiral.

EUR/USD hovers around 1.0400, while GBP/USD trades in the 1.2110 price zone. AUD/USD extended its weekly rally and stands at around 0.6760, while USD/CAD eased to the 1.3330 price zone. Finally, USD/JPY edged south and trades at around 138.40.

Spot gold consolidates around $1,755 a troy ounce, and WTI settled at $78 a barrel.

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 stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.