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Most financial assets witnessed a seemingly volatile US trading session on Tuesday. Optimism and fears constituted a fantastic mix that was seemingly obvious throughout the day. The US dollar fell to fresh monthly lows against most major rival currencies ahead of Wall Street’s opening but eventually managed to post a remarkable comeback ahead of the close amid extra hawkish remarks by ECB and Fed officials.
The EUR/USD pair surged at 1.0480 before falling to the 1.0292 lows. It trades around 1.0320. the GBP/USD pair hovers around 1.1830 after surging to 1.2028.
The AUD/USD trading at around 0.6750 and USD/CAD trades around 1.3300. Save-have currencies remained under pressure, with USD/CHF trading at 0.9450 and USDJPY at 139.40.
Gold extended its monthly rally but ended Tuesday with modest gains at around $1,776 a troy ounce. Crude oil prices rallied with Russian-Ukraine news, and WTI settled at around $86.80 a barrel.
Economic Data
UK employment data was generally disappointing. The ILO Unemployment Rate rose to 3.6% in September, while wage inflation rose in October. The UK will publish the October Consumer Price Index on Wednesday.
Market sentiment improved following the release of the US Producer Price Index as it rose by 8% YoY, improving from the previous 8.4%.
Other Developments
Modest concerns surged at the beginning of the day following tepid Chinese data. According to official sources, Industrial Production grew by 5% YoY in October, missing the market expectation for an expansion of 5.2%. Also, Retail Sales contracted by 0.5% in the same period, worse than the 1% advance anticipated.
The mood changed following news that Russian missiles hit Poland, killing at least two people. Missiles landed in the Polish village of Przewodów, near the border with Ukraine, and the government called an emergency meeting.
Poland is a NATO member, and things could escalate fast. Some Poland sources suggest it is most likely the remains of a Russian rocket shot down by the Armed Forces of Ukraine.
Donald Trump said he would do an announcement at his house at Mar-a-Lago tonight. Market players expect the announcement will be about running for President in 2024.
Also Read
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US Stocks Close Higher on PPI Data,
Bezos’ top tips to face recession go viral
Zelenskyy slams missile strikes on NATO territory
Poland’s strike reports put influence Wall Street, S&P 500 pops
ECB’s Holzmann: Interest rates will be increased further
Gold benefits from another cooler US inflation data
Fed’s Bostic: Full impact of policy on inflation won’t be seen for months
