Here’s what you need to know on Thursday, November 25:
The dollar continued to strengthen against its main rivals after the high-level US data releases and the US dollar index moved closer to a touching distance of 97.00 before entering a consolidation Thursday. The European Central Bank (ECB) will publish its monetary policy meeting accounts, ECB President Christine Lagarde and Bank of England Governor Bailey will also deliver speeches. Market conditions are expected to remain slim in the second half of the day due to the Thanksgiving holiday in the United States.
Data from the United States revealed on Wednesday that the basic personal consumption expenditure (PCE) price index climbed 4.1% on an annual basis, as expected. The November FOMC meeting report revealed that some policymakers wanted the Fed to be ready to adjust the pace of asset purchase cuts to counter continued high inflation. In the meantime, San Francisco Fed Chairman Mary Daly has said she will support an acceleration in tapering if the economic recovery and inflation outlook remain unchanged.
The yield on benchmark 10-year US Treasury bonds continued to climb towards 1.7% and the major Wall Street indices closed mixed.
EUR / USD fell to its lowest level since June 2020 at 1.1185 on Wednesday and clings to modest daily gains at the start of the European session above 1.1200 on Thursday.
GBP / USD extended its weekly slide to 1.3300 but managed to stage a modest rebound. Ireland would see it as a “window of opportunity” to reach an agreement on the Brexit protocol in Northern Ireland.
USD / JPY capitalized on rising US Treasury bond yields and renewing multi-year highs near 115.50. The pair were last seen moving sideways around 115.40.
Gold briefly dipped below $ 1,780 on Thursday under pressure from rising US Treasury bond yields. XAU / USD is currently showing recovery gains above $ 1,790.
USD / CAD, which hit its highest level in nearly two months at 1.2745 earlier in the week, is falling to 1.2650 following the rally in crude oil prices on Thursday.
Crypto-currencies: Bitcoin remains without direction below $ 60,000 on Thursday and Ethereum consolidates its weekly losses while maintaining above $ 4,000.