Top Investment Manager’s Market Update: November 26
As the week kicks off, the US Dollar faced some pressure due to easing worries over the political situation in the United States. President-elect D. Trump’s announcement of his pick for US Treasury Secretary helped alleviate concerns. Additionally, news of potential ceasefire negotiations in the Middle East weighed on the Greenback.
Key Events to Watch:
- The FOMC Minutes
- FHFA’s House Price Index
- S&P/Case-Shiller Home Price Index
- New Home Sales
- Conference Board’s Consumer Confidence
- Richmond Fed Manufacturing Index
- Dallas Fed Services Index
- API’s weekly report on US crude oil inventories
Currency Market Highlights:
- EUR/USD: The Euro started the week strong, surpassing the 1.0500 level against the US Dollar.
- GBP/USD: The British Pound reversed its recent losses, briefly breaking above 1.2600. Keep an eye on the CBI Distributive Trades report.
- USD/JPY: The US Dollar declined against the Japanese Yen, retesting the mid-153.00s. Watch for upcoming Japanese Foreign Bond Investment figures.
- AUD/USD: The Australian Dollar recovered from initial losses, ending the day with modest gains above 0.6500. Look out for the RBA’s Monthly CPI Indicator and Q3 Construction Work Done data.
Commodity Market Update:
- WTI Crude Oil: Prices dropped to multi-day lows below $69 per barrel as concerns eased over the Israel-Lebanon crisis.
- Gold and Silver: Gold prices fell to around $2,600 per troy ounce, while Silver prices dipped to two-week lows near $30 per ounce following news of potential ceasefire talks in the Middle East.
Conclusion
Overall, the markets are reacting to political developments and geopolitical tensions, impacting currency and commodity prices. Investors should stay informed about upcoming economic data releases and geopolitical events to make informed decisions in this volatile environment.