Bank of England Chief Economist Huw Pill speaking in parliament on TuesdayEuropean Central Bank speakers Tuesday include Mc Caul, CentenoFX option expiries for 26 November 10am New York cutHere is a summary of the policies Trump has said he will pursue in his upcoming 2nd termChina says ‘No one will win a trade war’ after Trump tariff threatCanada PM Trudeau and Trump spoke about trade and border security.Financial Times: Russia poised for cyber war in response to UK missile attacksRhys Mendes, Deputy Governor, Bank of Canada, will speak on TuesdayBarclays notes BoJ’s December meeting now “live” after inflation dataShanghai Securities News says possibility of a RRR cut in DecemberPBOC sets USD/ CNY reference rate today at 7.1910 (vs. estimate at 7.2357): 26 NovemberBank of Korea Expected to Hold Base Rate; USD Strength Cited as a ReasonUK data – BRC Shop Price Index -0.6% y/y (prior -0.8%)China ambassador says US trade policy will impact China, other countriesNow is probably a really great time to remember the market chaos of 2016-2020Trump threatens a 25% tariff on Mexico and CanadaJapan October PPI Services (Corporate Services Price Index) 2.9% y/y (prior 2.6%)Here is some detail on Rumble allocating some of its cash reserves to BitcoinMUFG says the US dollar drop is temporary – still well supported into year-end and beyondFed’s Kashkari hasn’t given up hope on a December FOMC interest rate cutGoldman Sachs says Trump tariff escalation will delay inflation falling to targetChair of NATO’s Military Committee says business should prepare for a “Wartime Scenario”Rabobank look for EUR/USD to parityWhy Is Bitcoin Performance Outstripping Lagging Ethereum?Deutsche Bank targets S&P 500 to 7,000 by the end of 2025European Union is proposing sanctions on Chinese firms aiding Russian invasion of UkraineI jinxed it. The Russell 2000 closes below all-time high level by less than a pointForexlive Americas FX news wrap: Bonds buy Bessent, Middle East peace hopes weigh on oilTrade ideas thread – Tuesday, 26 November, insightful charts, technical analysis, ideas
The
USD jumped higher in early trade on the back of a Trump ‘tweet’
(a post on his own social network similar to Twitter called ‘Truth
Social’) where he threatened Canada and Mexico with a 25% tariff
and to add another 10% on top of China tariffs. It was only yesterday
that the nomination of Scott Bessent as Treasury secretary was
greeted with widespread expectations of a moderating influence on
Trump and the dollar got sold off. Well, that sell-off set
the stage for the sharp bounce back for the dollar on Trump’s
‘tweet’. I
don’t generally have much patience for the bleating sheep ‘manipulation’ crowd (you know who they are, they rarely shut up)
but today they were quiet. I guess their team are off-limits for accusations of manipulating markets?
Anyway,
back to the market. Major
FX across the board slumped against the resurgent US dollar,
particularly commodity currencies and most particularly CAD. USD/CAD
surged around two big figures (1.3975 – 1.4175 give or take a few
points either way) before stabilizing somewhat. As I update its had a
retrace towards 1.4100.
AUD
and NZD have retraced a little more of their respective drops.
Otherwise
there was not a lot of news nor data. Kashkari spoke, says thinking
about a December FOMC rate cut seems reasonable. Japanese services
PPI came in higher than expected. For once the yen wasn’t much of a
focus! Nevertheless, USD/JPY is lower on the session.
This article was written by Eamonn Sheridan at www.forexlive.com.
