Sentiment seemed optimistic Tuesday as yesterday's risk aversion has faded quickly.

Sentiment seemed optimistic Tuesday as yesterday's risk aversion has faded quickly.
From other news, the Turkish lira collapse accelerated early on overnight following Erdogan's insistence of following Islamic-based efforts to cut rates.
However, during a speech later in the day, Erdogan highlighted "other tools" and signaled efforts to force exporters to use a 'sanctioned' FX rate, prompting an almost unprecedented squeeze and bringing the USDTRY cross from 18 to 12. That 30% jump is the biggest daily rise since 1983.

There are no significant data on the agenda today, likely leading to a decline in volatility throughout the day. However, the USDCAD pair might react to the Canadian retail sales for October, which are expected to improve notably month-on-month.

In the FX, the greenback dropped notably on Monday after the news that US Senator Joe Manchin, a moderate Democrat, will not support President Joe Biden's 1.75 trillion USD domestic investment bill (known as the Build Back Better), effectively ending its hopes of passing through the Senate. 

The EURUSD pair is trying to get above the long-term descending trend line from June's lows, and it looks like this time bulls will be successful. In such scenario, the next medium-term target for the euro will be at 1.1520.

Precious metals surged higher amid weaker USD, with gold trying to jump above 1,800 USD again. However, as long as the Fed remains hawkish, gains in the metals seem limited. 

US indices declined notably yesterday, but dip buyers jumped back into the market, and it looks like the worst could be over for now. During the London session, all major US indices were trading higher.
Show More Articles
Axiory uses cookies to improve your browsing experience. You can click Accept or continue browsing to consent to cookies usage. Please read our Cookie Policy to learn more.