Currency Market Analysis

Nov 10, 2021 | Currency Market Analysis

Global Themes

USD mixed as Wall Street snaps winning streak

Global sentiment shifted lower overnight as the S&P 500 and Nasdaq ended their eight-day winning streak of record highs.

US shares have been boosted by a strong third-quarter earnings season that is now mostly completed while last week’s decision from the US Federal Reserve to reduce its bond-buying program was relatively uneventful.

However, tonight, key US inflation numbers loom, and markets look wary ahead of this key release.

Greenback mixed

The USD was mixed with the greenback weaker versus major currencies but stronger against risk sensitive currencies like the Australian dollar.

The euro and Japanese yen were both higher.

Inflation, inflation, inflation

Tonight’s US inflation numbers will be key for the near-term outlook with the headline number seen at a massive 5.8% in annual terms,

The core number, which excluded food and energy, is still seen at an eye-watering 4.3%.

Last night, producer prices, were just below expectations, with the headline number at 8.6% in annual terms.

US CPI is due at 9.30pm.

Otherwise, Chinese inflation is due at 9.30am while German inflation numbers are released at 3.00pm.

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