Market Update: November 28, 2021
The Greenback faced significant downward pressure, resulting in multi-day lows as US yields decreased and investors adjusted their portfolios for month-end flows.
Key Highlights:
- The US Dollar Index (DXY) dropped to multi-day lows, breaking below the 106.00 support level, driven by weakness in US yields. US markets were closed for the Thanksgiving Day holiday.
- EUR/USD saw an uptick as the US Dollar weakened, approaching the crucial 1.0600 level. Germany’s preliminary Inflation Rate and EMU’s Economic Sentiment data will be closely watched.
- GBP/USD climbed to weekly highs near 1.2700, with the release of the UK’s Car Production figures on the horizon.
- USD/JPY fell to five-week lows below 151.00, with the upcoming release of weekly Foreign Bond Investment data.
- AUD/USD recovered from Tuesday’s decline, touching the key 0.6500 level ahead of Australia’s Private Capital Expenditure report and RBA’s Bullock speech.
- WTI prices dipped to around $68.00 per barrel due to reduced geopolitical tensions and a surprise increase in US gasoline inventories.
- Gold prices surged to $2,660 per troy ounce, benefiting from the weaker Greenback, lower yields, and reevaluation of the Fed’s rate trajectory. Meanwhile, silver prices dropped below $30.00 per ounce to two-week lows.
Analysis:
Today’s market movements reflect the impact of various factors on different asset classes. The weakening of the US Dollar and lower yields have influenced currency pairs like EUR/USD, GBP/USD, and USD/JPY, while commodities such as gold and silver have responded differently.
Investors are closely monitoring economic data releases, central bank speeches, and geopolitical developments to gauge market sentiment and potential investment opportunities. Understanding the interplay between these factors can help individuals make informed decisions about their financial assets and future investments.