GBP/JPY consolidates during Tuesday’s session as the Japanese Yen (JPY) appreciates on threats of possible intervention of the BoJ in the FX markets, and also as Pound Sterling traders wait for the release of UK’s fiscal budget. At the time of writing, the cross trades at 205.44, losing 0.08%.
USD/JPY makes a U-turn and tumbles over 0.54% on Tuesday as investors grew confident that the Federal Reserve will cut rates at the December meeting, following a soft US inflation report, along with weaker than expected Retail Sales.
The widening gap between Alphabet and Nvidia highlights shifting market sentiment as hyperscalers invest in their own AI-chip capabilities. Any further signs of customers diversifying away from Nvidia could add pressure to its valuation while supporting peers like Alphabet and Google Cloud.
More BOJ board members are leaning toward a rate hike in the coming months, including normally cautious Masu and Koeda. Noguchi’s upcoming remarks could add to the shift. Former BOJ official Momma says all signals remain within Ueda’s own guidance, and the board will follow whichever timing—December or January—the governor decides.
EUR/USD registers solid gains of over 0.51% on Tuesday, boosted by a weaker US Dollar, as data reinforced traders’ speculation that the Federal Reserve might reduce rates at the December meeting. At the time of writing, the pair trades at 1.1579, getting close to the 1.1600 figure.
GBP/USD advances some 0.59% on Tuesday due to broad US Dollar (USD) weakness amid a scarce economic docket in the United Kingdom (UK), with investors awaiting the release of the UK Autumn budget. At the time of writing, the pair trades at 1.3181, closing on the 1.3200 milestone.
tradeCompass maps NVIDIA’s key levels today and highlights why taking partial profits and moving stops to entry is essential as competitive pressures rise.
Gold (XAU/USD) holds firm on Tuesday as traders price a greater likelihood of a Federal Reserve (Fed) interest rate cut in December following dovish-leaning remarks from policymakers.
US Dollar (USD) is likely to trade between 156.35 and 157.30. In the longer run, the likelihood of USD rising to 158.00 is diminishing, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Momentum indicators are mostly flat; New Zealand Dollar (NZD) is likely to consolidate within a range of 0.5595/0.5630. In the longer run, NZD is expected to move lower; if it breaks below 0.5565, it could decline further to 0.5540, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Further range-trading appears likely; firmer underlying tone suggests a higher range of 0.6445/0.6485. In the longer run, the price action suggests there is scope for AUD to test 0.6405, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Downward momentum has faded; Pound Sterling (GBP) is likely to trade in a range between 1.3040 and 1.3165, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Euro (EUR) is likely to consolidate between 1.1495 and 1.1545. In the longer run, the likelihood of EUR breaking below 1.1470 has increased; EUR must close below 1.1470 before further declines are likely, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The Japanese Yen (JPY) faces continued pressure as geopolitical tensions over Taiwan and speculative trading test authorities’ tolerance, with potential Bank of Japan intervention looming during the thin Thanksgiving week, ING's FX analyst Francesco Pesole notes.
Geopolitical news should remain central today. The US has softened its stance on Thursday’s deadline for Ukraine to accept the peace deal with Russia, and a new 19-point deal is set to be discussed in the coming days.
The RBNZ is set to cut rates by 25bps to 2.25%, likely signaling the end of easing and providing support for NZD/USD toward 0.570 by year-end, ING's FX analyst Francesco Pesole notes.
Nasdaq 100 rebounds from interim lows but faces resistance near 25,650 points, with technical signals suggesting a brief bounce before potential continuation of the pullback, Société Générale's FX analysts note.
EUR/GBP implied volatility spikes as markets adopt a cautious stance ahead of tomorrow’s UK Budget, with the pair expected to trade around 0.880 unless new developments emerge, ING's FX analyst Francesco Pesole notes.
The recent rise in USD/JPY continues to slow. Japan’s growth minister Minoru Kiuchi said the government is watching currency movements, including speculative activity, with a high sense of urgency. Pair was last seen at 156.30 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
USD/CNH faces downward pressure after failing to clear 7.12, with technical patterns pointing to a possible drop toward 7.05–7.01 if key support at 7.08 gives way, Société Générale's FX analysts note.
US Dollar (USD) hovers near recent high but failed to make much headway. Uncertainty over Dec meeting outcome continues to swing sentiments. Dollar Index (DXY) last seen at 100.18 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Wednesday morning, the Reserve Bank of New Zealand will meet for its last monetary policy meeting of the year. It will also be the last meeting chaired by acting Governor Christian Hawkesby before Anna Breman takes over as Governor next week, Commerzbank's FX analyst Volkmar Baur notes.
The Euro has resumed its immediate bearish trend on Tuesday, weighed down by downbeat German GDP data, and is testing support at 0.8780 at the time of writing.
This week is a short week, at least for US trading, as Thanksgiving is celebrated on Thursday. Experience shows that trading will be correspondingly thin from Wednesday afternoon onwards.
The Euro (EUR) remains around 2% undervalued against the dollar despite Ukraine peace optimism, while weak German Ifo data and delayed fiscal stimulus weigh on sentiment, though analysts still expect EUR/USD to rebound above 1.160, ING's FX analyst Francesco Pesole notes.
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