I’ve gathered some key information to help craft a financial blog post focused on the forex market for the upcoming week.
- Recent Market Movements: U.S. Treasury yields have retreated recently, leading to a decrease in the broader U.S. dollar. This shift was influenced by lower-than-expected U.S. inflation data and rising U.S. jobless claims, which have reduced the likelihood of further monetary tightening by the U.S. central bank. Traders are beginning to price in more aggressive rate cuts for the next year.
- Currency and Commodity Movements: The EUR/USD pair surged, crossing its 200-day simple moving average and reaching its highest point in nearly three months. Gold prices also increased by over 2%, approaching the $2000 threshold, while silver prices jumped 7%. In the energy sector, oil (WTI) dropped for the fourth consecutive week, hitting its lowest point since mid-July.
- Looking Ahead: The U.S. economic calendar is expected to be light in the coming days due to the Thanksgiving holiday. This might lead to a consolidation of recent market moves, potentially resulting in a further pullback in yields and the U.S. dollar, and potentially more upside for precious metals and risk assets.
- Key Economic Data Releases: Some of the important data releases include German Import Prices, GBP CBI Realized Sales, U.S. New Home Sales, and AUD Retail Sales on November 27; BOJ Core CPI, and German GfK Consumer Climate on November 28; and EUR M3 Money Supply and Private Loans on November 29. Also, Canadian Current Account and U.S. Prelim GDP q/q will be significant data to watch.
