Trading news

Argentina Trade Balance (MoM) came in at $800M, above forecasts ($728M) in October

Gold (XAU/USD) remains firm during the North American session on Wednesday, but trims earlier gains of over 1% as the US Dollar (USD) rallies sharply as traders wait for a key US job report due on Thursday and assess the developments on the Russia-Ukraine war.

The Canadian Dollar (CAD) weakens against the US Dollar (USD) on Wednesday, with USD/CAD erasing all of Tuesday’s losses as broader Greenback strength weighs on the Loonie.

NZD/USD trades around 0.5600 at the time of writing on Wednesday, down 1.10% on the day, hitting a new eight-month low as disappointing New Zealand data and a broader deterioration in risk sentiment weigh heavily on the currency.

United States 20-Year Bond Auction rose from previous 4.506% to 4.706%

Risk aversion dominates financial markets in the American session on Wednesday, resulting in a much firmer US Dollar (USD) across the FX board. In the case of XAU/USD, demand for safety benefits both Gold and the Greenback, keeping the pair afloat, though off its intraday high of $4,132.

West Texas Intermediate (WTI) US Oil trades around $59.00 on Wednesday at the time of writing, down 2.80% on the day. The price remains under pressure as traders weigh mixed US inventory data and monitor escalating geopolitical risks linked to upcoming sanctions on major Russian producers.

Russia Producer Price Index (YoY) increased to 0.7% in October from previous -0.4%

Russia Producer Price Index (MoM) up to 0.9% in October from previous 0.5%

USD/JPY extends its upward trajectory on Wednesday, with the pair surging to levels last seen in mid-January.

United States EIA Crude Oil Stocks Change registered at -3.426M, below expectations (-1.9M) in November 14

Federal Reserve (Fed) Governor Stephen Miran spoke about the United States (US) financial regulatory framework at the Bank Policy Institute, in Washington DC on Wednesday. He claimed that he strongly supports United States (US) central bank's efforts to streamline bank regulations.

The GBP/USD edges modestly lower on Wednesday as inflation in the UK ticked lower in October, increasing the chance of a possible interest rate cut by the Bank of England (BoE). At the time of writing, the pair trades at 1.3120 after reaching a peak of 1.3154.

Silver (XAG/USD) rises firmly on Wednesday, up 2.10% on the day to $51.90 at the time of writing, supported by renewed safe-haven flows as global sentiment shifts into risk-off mode. 

The Euro (EUR) pares back early strength against the British Pound (GBP) on Wednesday as traders digest a fresh round of inflation data from both the United Kingdom and the Eurozone. At the time of writing, EUR/GBP is trading around 0.8817, retreating from an intraday high near 0.8839.

The Japanese Yen (JPY) is weak, down 0.4% against the US Dollar (USD) and underperforming nearly all of the G10 currencies in an environment of broad-based USD strength, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Pound Sterling (USD) is soft, down a modest 0.2% against the US Dollar (USD) and a midperformer among the G10 in an environment of broad USD strength, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Euro (EUR) is entering Wednesday’s NA session flat against the US Dollar (USD) as it outperforms all of the G10 currencies in an environment of broad-based USD strength, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Canadian Dollar (CAD) is little changed on the session as spot remains anchored around the 1.40 point, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Minutes of the United States (US) Federal Reserve’s (Fed) October 28-29 monetary policy meeting will be published on Wednesday at 19:00 GMT.