Forex Today: Volatility returns with upbeat US data

FXStreet Team FXStreet

Here is what you need to know on Tuesday, November 24:

The dollar rallied on self-strength for the first time in months, following the release of better than expected growth-related figures. The greenback was under selling pressure on the back of risk-appetite ahead of the headlines, as investors were focused on coronavirus vaccination plans in the US and some European countries, who announce December/January as possible dates.

EUR/USD peaked at 1.1905 to later flirt with the 1.1800 figure, as EU data failed to impress. Manufacturing activity held within expansion levels in November, but services output plunged amid the latest coronavirus-related restrictions imposed in the region.

The Pound was among the strongest amid mounting hopes that a Brexit trade deal could be announced soon. EU’s chief negotiator Michel Barnier said that big differences persisted in trade talks but added that both sides were pushing hard for a deal, despite fundamental divergences still remain.

The US government is pushing for an informal alliance of Western nations to jointly retaliate against China. The idea came as Beijing is putting pressure on Australia after this last called for an investigation into the origins of the Covid-19 pandemic, banning imports from multiple goods produced in the country.

AstraZeneca reported that its coronavirus vaccine has up to 90% effectiveness in preventing coronavirus. Full data has yet to be released, although the headline provided support to high-yielding assets in the European session.

US indexes traded mixed throughout the session but got to post modest gains ahead of the close. The Dow Jones Industrial Average was the best performer.

Gold plunged to its lowest in four months, trading as low as $1,830 a troy ounce on the back of the resurgent dollar’s demand. Upbeat US data diminish chances of a large stimulus package, which also plays against the bright metal.

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