Market Comment – Tuesday, 26 November 2024
Markets remain steady today as traders await US data, including the Housing Price Index, Consumer Confidence for November, and New Home Sales data. Additionally, the FOMC Minutes release later today will provide further clues on the Federal Reserve’s monetary policy stance. Energy markets are seeing modest gains in crude oil, while natural gas prices stabilise after recent surges. Precious metals like gold and silver are inching upward, while currency movements reflect mixed trends across the board.
Key Data Out Today
- US Housing Price Index (MoM, Sep): Expected at 0.3%, unchanged from the previous month.
- US Consumer Confidence (Nov): Markets are keen to gauge consumer sentiment for the holiday season.
- US New Home Sales Change (MoM, Oct): Previous data showed a 4.1% rise; a slower pace may signal cooling demand.
- BoE’s Pill Speech (15:00 GMT): Investors will watch for any updates on the Bank of England’s inflation and growth outlook.
- FOMC Minutes (19:00 GMT): Expected to reveal insights into the Fed’s future interest rate trajectory.
Energy & Precious Metals
- Crude Oil: WTI rose 0.11% to $69.01 per barrel, and Brent gained 0.16%, trading at $73.13. Despite slight gains, both benchmarks remain down this week due to global demand concerns.
- Natural Gas: Stabilised at $3.43/MMBtu, down 0.10% today after a strong rally last week driven by winter demand.
- Gold: Edged up 0.07% to $2,612.22 per ounce as investors seek safe havens ahead of the FOMC Minutes.
- Silver: Increased 0.11% to $30.14, though weekly performance remains weak, reflecting ongoing volatility in industrial metals.
Currency Movements
EUR/USD
- EUR/USD: Gained 0.35%, trading at 1.0479, supported by stabilization in the Eurozone as traders await further US data.
GBP/USD
- GBP/USD: Up 0.13% at 1.2548, showing resilience despite recent dollar strength. BoE’s Pill speech later today could offer further direction.
AUD/USD and NZD/USD
- AUD/USD and NZD/USD: Both recovered slightly, with AUD/USD up 0.21% to 0.6477 and NZD/USD rising 0.43% to 0.5835, buoyed by modest improvements in risk sentiment.
USD/JPY
- USD/JPY: Dropped 0.18% to 154.09 as the yen sees safe-haven inflows ahead of key US releases.
USD/CNY
- USD/CNY: Flat at 7.2672, showing stability as markets digest China’s economic recovery measures.
USD/CHF
- USD/CHF: Down 0.20% to 0.8870, reflecting a slightly weaker dollar as traders position for the FOMC Minutes.
USD/CAD
- USD/CAD: Up 0.15% to 1.4120, with the Canadian dollar underperforming due to weaker oil prices.
USD/MXN
USD/MXN: Rose 0.24% to 20.6330, as the peso continues to face pressure from global risk aversion.
USD/INR
- USD/INR: Slightly lower at 84.30, down 0.09%, as the rupee sees limited movement amid broader dollar weakness.
Things to Keep a Watch On:
- US Consumer Confidence (15:00 GMT): Any surprises in the data could sway dollar strength and market sentiment.
- FOMC Minutes (19:00 GMT): Key for gauging the Fed’s stance on inflation and the timing of future rate hikes.
- BoE’s Pill Speech: Market participants will look for signals on UK economic challenges and policy adjustments.
- Energy Prices: Watch natural gas movements, as winter demand continues to drive volatility in energy markets.
- Precious Metals: Gold and silver trends may indicate shifting risk appetite ahead of the US data releases.