Here is what you need to know about the important news between November 13th, 2023, and November 17th, 2023, where we take a look at the economic data, market news and headlines likely to have the biggest impact on the market prices this week and beyond, as well as the US Dollar, and other key correlated assets.
U.S. dollar index
Given economic conditions on the ground and the near-term outlook, there is a risk that the monetary policy setting between the Bank of Canada and the Fed will diverge further, with the former pivoting to a relatively looser stance. This should keep the Loonie flying at a low altitude, but it will probably take even more pronounced weakness in Canada to see significantly more downside.
Gold
Gold price (XAU/USD) has fallen to around $1,940 and it is exposed to more downside amid multiple headwinds. The precious metal loses shine due to no significant escalation in Middle East tensions, hawkish messages from Federal Reserve (Fed) Chair Jerome Powell and his colleagues, and uncertainty ahead of the US Consumer Price Index (CPI) data for October, which will be published on Tuesday.
The appeal for Gold diminished significantly after Jerome Powell said he was less confident that the current interest rate policy was sufficiently restrictive to get inflation under control. Further action in the US Dollar, bond markets and the Gold price will be guided by US inflation data, which will dictate whether more interest rate hikes are needed.
Oil.
Oil prices have already contracted 20% after briefly hitting $94 at the end of September. Oil prices are getting battered as OPEC+ looks unable for now to provide any incentive for the markets to push Oil prices back up. The number of negative headlines on slowing demand in China and other big demand side representatives is too big a catalyst against the small efforts from Russia and Saudi Arabia to limit their supply.
Meanwhile, The US Dollar (USD) is trading with a small change of heart. Just as markets were starting to prepare for the end of the rate hike cycle from the US Federal Reserve, its Chairman Jerome Powell said in a speech last week that more hikes might still come as the Fed sees a possible uptick in inflationary pressures. That reasoning got confirmed on Friday when the preliminary numbers for November from the University of Michigan revealed an uptick in inflation expectations.
Economic calendar most important releases – All times are GMT
Tuesday, November 14, 2023
08:30 USD Core CPI (MoM) (Oct)
08:30 USD CPI (MoM) (Oct)
08:30 USD CPI (YoY) (Oct)
18:50 JPY GDP (QoQ) (Q3)
Wednesday, November 15, 2023
All Day Holiday Brazil – Republic Day
02:00 GBP CPI (YoY) (Oct)
08:30 USD Core Retail Sales (MoM) (Oct)
08:30 USD PPI (MoM) (Oct)
08:30 USD Retail Sales (MoM) (Oct)
10:30 USD Crude Oil Inventories
Thursday, November 16, 2023
08:30 USD Initial Jobless Claims
08:30 USD Philadelphia Fed Manufacturing Index (Nov)
Friday, November 17, 2023
05:00 EUR CPI (YoY) (Oct)
08:30 USD Building Permits (Oct)
Thanks for reading! Have a great week!
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