Market Movers Update, 22 November 2021
Shorter trading week for everyone since Thanksgiving is just around the corner – keep an eye for a newsletter with early closing times later this week.
Last week though, S&P 500 and Nasdaq closed with new highs and Biden is expected to announce his nomination for the next Fed chief this week.
Let’s dive in!
What moved the markets?
The euro continued its bearish run against the US dollar settling at its lowest level since July 2020, trading below $1.13. The euro slumped after ECB President Christine Lagarde warned against premature tightening. Several central banks are increasingly open to the idea of hiking interest rates soon to cap inflation growth.
West Texas Intermediate crude contracts fell in last week’s trading, reaching $76 per barrel. The decline came after OPEC reduced its expectations for global oil demand growth by 200,000 barrels in 2021, and the growing concerns over the White House’s approval to release more crude from the US Strategic Petroleum Reserve (SPR).
GBPUSD saw some action in last week’s trading amid concerns of inflation and resurging Covid-19 cases. UK CPI data showed inflation rose to 4.2%, the highest level in nearly a decade. Many observers believe that the rise in inflation may force the Bank of England to raise interest rates during the first quarter of 2022.
Dollar Index – target hits!
Do you remember the analysis given last week? (HYPERLINK) Targets were hit on the weekly chart for DXY reaching 96.00 with ease. What comes next? Here is the thought process on what we are looking for this week.
Since the targets were hit and we even attempted to break the 96.00 level a few times, we are hoping that it will not be successful, and we will retrace to the downside allowing foreign currency pairs to rally.
We are looking to retrace to 95.00 or 95.25 level at least, so keep a good eye on the FX market and act accordingly!