Market Drivers – US Session, Nov. 14

China’s retail sales and industrial production figures, Australia’s Wage Price Index, and Japan’s Q3 GDP are set to be released on Wednesday.

The US dollar experienced a sharp decline in October due to increased inflation, which led to a drop in the Dollar Index (DXY).

The 10-year yield fell from 4.60% to 4.48%, affecting gold and silver prices. More inflation figures are expected on Wednesday, with the Producer Price Index (PPI) and October Retail Sales report indicating a contraction of 0.3%.

The EUR/USD surged towards the 1.0900 level, surpassing the key 100-day and 200-day Simple Moving Averages (SMA).

Economic data from the Eurozone showed a 0.1% contraction during the third quarter and a positive change in employment by 0.3%. Germany will report wholesale inflation on Wednesday, while Eurostat will release Industrial Production data.

GBP/USD experienced a significant gain of over 200 pips, reaching the 1.2500 zone and surpassing the 200-day Simple Moving Average (SMA), turning the outlook bullish for the pair. UK inflation data and Retail Sales figures are due on Wednesday, and if inflation continues to decline as expected, the Bank of England may keep monetary policy decisions on hold.

USD/CHF dropped to its lowest level since early September, with the Swiss franc lagged behind despite comments from Swiss National Bank Chairman Thomas Jordan not ruling out the possibility of more interest rate hikes in the future. USD/JPY dropped significantly from 151.80 to 150.30, and Japan will release preliminary Q3 GDP data on Wednesday.

AUD/USD broke above 0.6450 and surpassed 0.6500, approaching the key barrier at 0.6520. The Australian Bureau of Statistics is expected to release the Wage Price Index, which is anticipated to rise by 1.3%. Jobs data will also be published on Thursday.

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