Forex market uncertain ahead of BoE hearings and key data
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The forex market remains volatile on Tuesday as the US Dollar (USD) corrects lower following last week's rally. Market participants focus on the Bank of England’s (BoE) Monetary Policy Hearings and Canada’s Consumer Price Index (CPI) data. Meanwhile, the Reserve Bank of Australia’s (RBA) cautious tone supports the Australian Dollar (AUD), while rising crude oil prices weigh on USD/CAD.
Us dollar pares gains
The US Dollar Index (DXY) turned south on Monday, closing in negative territory after last week’s strong performance. Early Tuesday, the index trades in a tight range above 106.00, reflecting mixed sentiment as traders assess the outlook for US monetary policy and global risk factors.
Weakness in the USD has benefited other major currencies, with EUR/USD consolidating above 1.0600 and GBP/USD holding just below 1.2700.
Key currency pair highlights
AUD/USD: The pair extended its gains following the RBA’s November meeting minutes, which reiterated the board’s cautious stance on rate adjustments. AUD/USD trades above 0.6500, supported by USD weakness and RBA’s reluctance to commit to immediate policy changes.
USD/CAD: Rising crude oil prices and broad-based USD softness weighed heavily on the pair, which fell over 0.5% on Monday. USD/CAD now hovers above 1.4000 as traders await Canada’s CPI data, which is expected to show a rise to 1.9% YoY in October from 1.6% in September.
USD/JPY: Japan’s Finance Minister Katsunobu Kato reiterated the government’s vigilance on FX moves, but USD/JPY remains range-bound near 154.50, reflecting mixed drivers of JPY safe-haven demand and resilient USD sentiment.
GBP/USD: The pair snapped a six-day losing streak on Monday but failed to break above 1.2700. Attention now turns to BoE Governor Bailey and the Monetary Policy Committee’s appearance before the Treasury Committee.
Gold (XAU/USD): The yellow metal regained bullish momentum on Monday, rising nearly 2% and extending gains above $2,620 as geopolitical risks and USD weakness fueled safe-haven demand.
The forex market remains driven by mid-tier data and central bank commentary, with key focus areas including the BoE hearings, Canada’s CPI, and US housing data. The USD consolidates after a strong rally, allowing other currencies to recover, while Gold benefits from safe-haven flows. Traders should monitor developments from central bank officials and economic data releases for potential market shifts.
Us dollar pares gains
The US Dollar Index (DXY) turned south on Monday, closing in negative territory after last week’s strong performance. Early Tuesday, the index trades in a tight range above 106.00, reflecting mixed sentiment as traders assess the outlook for US monetary policy and global risk factors.
Weakness in the USD has benefited other major currencies, with EUR/USD consolidating above 1.0600 and GBP/USD holding just below 1.2700.
Key currency pair highlights
AUD/USD: The pair extended its gains following the RBA’s November meeting minutes, which reiterated the board’s cautious stance on rate adjustments. AUD/USD trades above 0.6500, supported by USD weakness and RBA’s reluctance to commit to immediate policy changes.
USD/CAD: Rising crude oil prices and broad-based USD softness weighed heavily on the pair, which fell over 0.5% on Monday. USD/CAD now hovers above 1.4000 as traders await Canada’s CPI data, which is expected to show a rise to 1.9% YoY in October from 1.6% in September.
USD/JPY: Japan’s Finance Minister Katsunobu Kato reiterated the government’s vigilance on FX moves, but USD/JPY remains range-bound near 154.50, reflecting mixed drivers of JPY safe-haven demand and resilient USD sentiment.
GBP/USD: The pair snapped a six-day losing streak on Monday but failed to break above 1.2700. Attention now turns to BoE Governor Bailey and the Monetary Policy Committee’s appearance before the Treasury Committee.
Gold (XAU/USD): The yellow metal regained bullish momentum on Monday, rising nearly 2% and extending gains above $2,620 as geopolitical risks and USD weakness fueled safe-haven demand.
The forex market remains driven by mid-tier data and central bank commentary, with key focus areas including the BoE hearings, Canada’s CPI, and US housing data. The USD consolidates after a strong rally, allowing other currencies to recover, while Gold benefits from safe-haven flows. Traders should monitor developments from central bank officials and economic data releases for potential market shifts.