November 30th Daily Analysis
November 30th Daily Analysis
Dollar Index (USDX)
The dollar stabilizes above 106.00 levels, awaiting the words and hints of the Federal Reserve Chairman today evening at 8:30 pm platform time. As head of the Fed, which controls short-term interest rates, he has more influence over the U.S. dollar’s value than any other person. Traders closely watch his speeches as they are often used to drop hints regarding future monetary policy.
The dollar continued to decline against a number of other currencies yesterday, Tuesday, November 29, and lost some of the gains recorded at the end of the previous session, amid growing concerns due to the restrictions to stop the spread of the Corona virus in China.
The dollar index, fell 0.4% to 106.19.
And the US currency retained marginal support from statements referring to the hawkish policy that came from the words of the Federal Reserve officials on Monday.
Pivot point: 106.50
The euro rose with anticipation of inflation data to be released today, Wednesday, November 30, at a rate of 0.4% to $1.0380, near its highest level in 5 months at $1.0497 at the close of a previous session.
On Monday, the European Central Bank President Christine Lagarde said that inflation in the euro zone has not yet peaked and may rise more than currently expected, hinting at a series of interest rate increases in the future.
Inflation data in the euro zone for November is scheduled to be released on Wednesday, and economists polled by Reuters expected inflation to reach 10.4% on an annual basis.
Last Monday, data showed that consumer prices in Spain rose 6.8 percent in the 12 months until November, at a slower pace than the 7.3 percent increase in the 12 months until October.
Pivot point: 1.1985
SPOT GOLD (XAUUSD)
Gold prices rose at the settlement of trading on Tuesday, November 29th, to compensate for most of the losses recorded at the beginning of the session with the stability of the dollar.
Upon settlement, the most active gold futures contract rose by $8.40, or 0.5%, to $1,763.70 an ounce.
Speculation indicates that the widespread protests taking place in Chinese cities during that period may force the government to ease the restrictions related to Corona.
The Chinese government has pledged to increase vaccination efforts, amid hopes that this will be a step to reduce severe restrictions in the country with the second largest economy in the world.
Pivot point: 1,750
US Crude (USOUSD)
The price of US crude rose at the settlement of trading yesterday, Tuesday, November 29, amid hopes that China will ease the closure restrictions related to Corona.
Upon settlement, US crude futures rose by 1.2% to $78.20 a barrel.
On the other hand, Brent crude futures settled down by 0.2%, to record $83.03 a barrel.
The health authorities in China revealed its plan to start a campaign to vaccinate the elderly and reduce the interval between booster doses to 3 months for people over 80 years old.
Goldman Sachs expects OPEC to take more steps to curb the price decline and to achieve balance in the oil market, and it is expected that the average price of Brent during 2023 will reach $110.
Pivot point: 78.25