Bullet Report: Dollar Retreats mildly as Investors Take Profits after Massive Rally.

Today’s focus will be on the US Retail Sales as well as on a few Speeches from FED members. Yesterday, the USD continued to strengthen to 11-month highs against a basket of currencies, however the rally stalled; thus we saw a mild retreat later in the day. At this point in time, where Trump’s political plans are yet in a vast majority unknown, price action and particularly the USD will be extremely sensitive to any news. This should intensify further this year as we approach the critical EU elections including the Italian Referendum in December and the French Elections in early 2017. In other words, volatility is here to stay.

Currencies: The Dollar rally stalled mildly after positing new 11 month highs. EURUSD dropped to 1.0708 at one point before bouncing to 1.0750 at time of writing. Against the JPY, the USD rose over 108.00 reaching a high of 108.55, its highest since end of May. In the short term, USD/JPY is likely to remain supported by risk appetite and expectations of a Fed rate hike in December. The USD has gained after the US elections, on speculation that Trump’s policies will be beneficial to the US economy, and thus interest rates will have to be increased sooner than the market expected. Also to note, is the lack of alternative safe havens as GBP is in trouble due to Brexit and the EU is going to face a tough political process soon leaving no other choice for investors to seek the relative safety of the Dollar.

Stocks: Expectations for a higher GDP under a Trump administration, have pushed stock markets and particularly Dow Jones to new record highs. Markets were mixed though, with the Dow closing 0.11% higher while SP500 and Nasdaq closed at -0.01% and -0.36% respectively. Asian markets were also mixed today. This means that we need fresh news/data in order to point to a further direction. Today’s US retail Sales could be key.

Oil and Gold: Oil prices gained after 3 days of sharp losses. Oil is now 20% lower than its peak in October, trading at $42 a barrel from $52. Traders have been positioning ahead of an OPEC meeting scheduled for Nov. 30, where members are set to discuss a proposed production cut in an effort to pump up oil prices. Gold also bounced to $1230 after hitting $1211.80, its lowest since June.

The post Bullet Report: Dollar Retreats mildly as Investors Take Profits after Massive Rally. appeared first on Forex.Info.

Source:: Bullet Report: Dollar Retreats mildly as Investors Take Profits after Massive Rally.

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