Market Comment: November 19, 2024
Today’s calendar highlights include the BoE Monetary Policy Report Hearings at 10:00 GMT. We also find out Canada’s CPI Core YoY (October), figures are out at 13:30 GMT. Expected to drive movements in GBP and CAD. Markets are looking for clues on inflation management and central bank policy trajectories.
Key Data Out Today
- 10:00 GMT – GBP: BoE Monetary Policy Report Hearings
- 13:30 GMT – CAD: Consumer Price Index (YoY, Oct)
Energy & Precious Metals
- Crude Oil: WTI crude edged up by 0.24%, currently trading at $69.33. Brent followed, gaining 0.21% at $73.45, with sentiment supported by recent supply adjustments.
- Natural Gas: Fell by 0.56%, trading at $2.95/MMBtu, with supply concerns keeping prices elevated overall.
- Gold: Gained 0.42%, trading at $2623.40, supported by a weaker USD and geopolitical uncertainties.
- Silver: Advanced 0.74%, now at $31.39, as industrial demand lent support.
Currency Movements
- EUR/USD The euro remains under pressure, trading slightly lower at 1.0586, down 0.07% for the day. Weak economic performance in the eurozone and stronger USD demand have kept the pair subdued. The focus shifts to upcoming inflation data, which could signal the ECB’s next steps.
- GBP/USD trades at 1.2670, marginally down by 0.06% today. Concerns over the UK’s economic growth, highlighted by the BoE Monetary Policy Report Hearings, have weighed on the pound. Traders are closely monitoring the BoE’s stance for any updates on inflation management or rate decisions.
- AUD/USD The Australian dollar trades slightly higher at 0.6508, up 0.05%. While gains remain muted, commodity price stability has provided modest support. However, ongoing concerns about global growth and risk sentiment keep the AUD on the back foot.
- NZD/USD is nearly flat at 0.5889, showing a minor 0.01% decline. The Kiwi dollar remains pressured by risk-off sentiment. Demand for higher-yielding currencies has reduced. Markets are awaiting further economic data from New Zealand.
- USD/JPY The pair holds at 154.42, down 0.12% for the day. A modest pullback in the USD and steady demand for safe-haven assets like the yen have capped gains. BoJ Governor Ueda’s recent speech has kept the yen steady, with markets awaiting further guidance on monetary policy.
- USD/CNY is trading higher at 7.2352, up 0.11% as the yuan struggles amidst subdued Chinese economic data. Persistent concerns over growth in China and geopolitical risks are keeping the currency under pressure.
- USD/CHF The pair is marginally up by 0.05%, trading at 0.8837. The franc continues to act as a safe-haven option, but USD resilience has kept the pair near recent highs.
- USD/CAD trades at 1.4020, unchanged on the day. Traders are eyeing Canada’s inflation data later today. They expect that stronger CPI figures could boost the loonie. Strong CPI figures could also cap gains in the pair.
- USD/MXN is stable at 20.2164, gaining just 0.02%. The peso has held strong recently. Attractive yields have supported it. However, global risk sentiment may impact its performance in the coming sessions.
- USD/INR holds steady at 84.40, showing a modest 0.01% rise. The rupee remains range-bound, with limited catalysts in recent sessions and steady dollar demand keeping the pair near current levels.
Things to Keep a Watch On:
- BoE Hearings: Any shifts in tone regarding inflation or economic recovery could impact GBP direction.
- Canadian Inflation Data: A surprise in CPI figures might prompt speculation over future BoC rate moves, influencing CAD.
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