FX Today: The FOMC Minutes and UK inflation data gather all the attention

Pablo Piovano FXStreet

The US Dollar (USD) traded in a slightly constructive tone, extending its recent advance on Tuesday, all against the backdrop of a persistent risk-off sentiment and steady caution ahead of key data releases on the US docket.

Here’s what to watch on Wednesday, November 19:

The US Dollar Index (DXY) alternated gains with losses in the 99.50-99.60 band amid a widespread decline in US Treasury yields and rising prudence ahead of US data releases. The FOMC Minutes will take centre stage, seconded by the usual weekly MBA Mortgage Applications and the EIA’s weekly report on US crude oil stockpiles. In addition, the Fed’s Williams is due to speak.

EUR/USD slipped back to multi-day lows near 1.1570 amid the generalised absence of direction in the FX galaxy. The Current Account results in the euro zone are due, ahead of the final Inflation Rate in the region and the preliminary Labour Cost Index. Additionally, the ECB’s Buch is expected to speak.

In line with the rest of its risk-related peers, GBP/USD traded without clear direction around the 1.3150 zone on Tuesday. The UK Inflation Rate will be on top of the domestic agenda.

USD/JPY clinches fresh tops past 155.70, advancing for the third day in a row and reigniting at the same time concerns over a potential FX intervention by the MoF. Next on tap in Japan will be the Balance of Trade results and Machinery Orders.

AUD/USD regained the smile following Monday’s steep pullback, briefly reclaiming the 0.6500 barrier and beyond. The Westpac Leading Index and the quarterly Wage Price Index are next on tap in Oz.

WTI traded with marked gains above the key $60.00 mark per barrel as traders continued to assess the recently announced US sanctions on Russian oil and oversupply concerns.

Gold reversed part of its three-day negative streak, although faltering just ahead of the $4,100 mark per troy ounce amid the broad-based risk-off environment, lower US Treasury yields and shrinking bets for an interest rate cut by the Federal Reserve at its December meeting. In the meantime, Silver prices regained balance and approached the $51.00 mark per ounce, setting aside three consecutive daily pullbacks.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD: Downward-sloping trendline near 1.3470 remains key barrier

The British pound faces selling pressure against its major currency peers, trading 0.1% lower at around 1.3420 against the US Dollar during the European trading session on Tuesday.

EUR/USD flatlines above 1.1500, awaits US jobs data

EUR/USD holds steady around 1.1505 in European trading hours on Tuesday. Markets remain cautious ahead of a slew of US jobs data, starting with the JOLTS Job Openings Survey later today. However, the downside appears capped by hot Eurozone inflation in July, bolstering the case for a European Central Bank rate hike at the next meeting.

Gold holds steady above $4,050; hawkish Fed bets favor bearish traders

Gold remains confined in a range below the $4,100 mark through the early European session as traders opt to wait for further developments surrounding the Middle East crisis. Meanwhile, the uncertainty over US-Iran peace talks continues to act as a tailwind for the safe-haven US Dollar.

Aave: Bearish RSI divergence risks a 20% drop despite steady DeFi deposits

Aave (AAVE) extends a mild near-term recovery on Tuesday, holding above its 50-day Exponential Moving Average at $90.80. Aave protocol’s V3 deployment on Monad blockchain recorded over $500 million in deposits over the last month, reflecting increased user adoption.

US JOLTs report in focus

In the US, the June JOLTs report will be in the spotlight. Job openings have increased modestly this year, which has historically predicted rising wage cost pressures ahead. June trade balance data will also be released in the afternoon and the preliminary reading pointed towards a stable trade deficit from May. The Fed's Schmid (non-voter, hawk) will be on the wires overnight.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.