On Tuesday, the U.S. dollar rose to an 11-month high against a basket of currencies. The Greenback surged yesterday, hoisted by a jump in Treasury yields after Trump's victory; as investors expect that Trump’s fiscal spending to boost the economy could lead to inflation. The benchmark 10-year Treasury note yield rose as much as 0.4%, its highest level in more than 10 months.
The U.S. Dollar index settled above 100.20 pips.
USD rose vs. JPY and traded near to the psychological level of ¥110 on a rise in U.S. bond yields. Technically, breaking such level could pave the way for more highs.
Gold failed to maintain its yesterday’s gains and settled at $1,222. The yellow metal is expected to trade sideways, while the key support levels are between $1,200 and $1,210.
The British pound fell strongly, as the UK inflation rate registered an unexpected fall in October. However, the costs of raw materials and factory gate prices rose much faster in the last month as GBP declined due to the Brexit.
The British pound declined to $1.24, paring its three-day gain, as investors turned once again to the UK political risks after the ‘Brexit.’ On the other hand, Cable pared its losses later and traded at $1.2450. However, it’s unlikely to break above the $1.25 level.
Oil prices rose as much as 4% yesterday, recovering from its lowest levels in months, amid expectations that OPEC could agree later this month to cut production to reduce a supply glut. U.S. crude settled above $45.50 and could settle above $45 this week.
The most important economic events:
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