Market Drivers; US Session

Market Update: Dollar Weakens, Euro and Pound Strengthen

The US Dollar continued its downward trend on Tuesday, November 19th, as the initial enthusiasm for the Trump rally seems to have waned. This potential temporary dip could lead to another “buy the dip” opportunity.

Key Events and Economic Data:

US Dollar: The US Dollar Index (DXY) declined further, approaching the critical 106.00 support level. Upcoming US economic data, including Building Permits, Housing Starts, and the API’s weekly crude oil inventory report, will be closely watched.

Euro: EUR/USD surged to a three-day high, surpassing the 1.0600 level, driven by the Dollar’s weakness. The EMU’s final Inflation Rate, Current Account results, Labour Cost Index, and a speech by ECB’s Elderson will be key events to monitor.

Pound Sterling: GBP/USD rebounded sharply, approaching the 1.2700 level after a six-day losing streak.

Japanese Yen: USD/JPY resumed its upward trend, reclaiming the 155.00 level.

Australian Dollar: AUD/USD gained momentum, surpassing the 0.6500 level, benefiting from the Dollar’s weakness. The RBA’s Minutes of the November 5th meeting will be released.

Commodities: WTI oil prices surged towards the $70.00 per barrel mark, driven by renewed geopolitical tensions in the Russia-Ukraine conflict. Gold and Silver prices also rallied, with Gold surpassing $2,600 per troy ounce and Silver exceeding $31.00 per ounce.

The weaker US Dollar and lower US yields supported a broad-based rally in other currencies and commodities.