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America’s Roundup: Dollar gains as US CPI sparks tightening fears, Wall Street ends lower, Gold hit a five-month high, Oil prices plunge into close, roiled by inflation fears-November 11th,2021

Market Roundup

•US Oct Real Earnings (MoM)  -0.9%,0.8% previous

•US Oct  Initial Jobless Claims267K,265K forecast, 269K previous

•US Jobless Claims 4-Week Avg  278.00,284.75K previous

•US Continuing Jobless Claims2,160K, 2,095K forecast, 2,105K previous

•US Oct CPI Index, s.a  276.72,274.14 previous

•US Oct CPI, n.s.a (MoM ) 0.83%,0.27% previous

•US Oct CPI Index, n.s.a.  276.59,275.76 forecast, 274.31 previous

•US Oct CPI (YoY) 6.2%,  5.8% forecast, 5.4% previous

•US Oct Core CPI (MoM)  0.6%,0.4% forecast, 0.2% previous

•US Oct Core CPI (YoY)  4.6%,4.3% forecast, 4.0% previous

•US Oct CPI (MoM)  0.9%,0.6% forecast, 0.4% previous

•US Gasoline Inventories -1.193M forecast, -1.488M previous

•US Crude Oil Inventories -1.555M,2.125M forecast, 3.291M previous

•US Oct Cleveland CPI (MoM)  0.6%,0.5% previous

Looking Ahead Economic Data (GMT)

•Japan Sep Industrial Production (MoM)  -5.4%-5.4%

Looking Ahead - Events, Other Releases (GMT)

•No significant events

Currency Summaries

EUR/USD: The euro declined on Wednesday as dollar rose after U.S. consumer inflation surged to its highest since 1990, raising concerns the Federal Reserve will tighten monetary policy sooner than expected. CPI rose 0.9% on a monthly basis after rising 0.4% in September as the largest gain in four months boosted the annual increase to 6.2%. It was the biggest year-on-year rise since November 1990 and followed a 5.4% leap in September. The euro was last down 0.61% at $1.1482 after earlier touching $1.1475, its lowest level since July 21, 2020. Immediate resistance can be seen at 1.1542(38.2%fib), an upside break can trigger rise towards 1.1593 (50%fib).On the downside, immediate support is seen at 1.1473 (Lower BB), a break below could take the pair towards 1.1400(Psychological level).

GBP/USD: Sterling edged lower on Wednesday as Britain and the European Union looked far from finding a post-Brexit agreement trade on Northern Ireland, while Bank of England interest rate raise bets ebbed.Britain left the EU last year but has since put off implementing some of the border checks between its province of Northern Ireland and EU member Ireland that the bloc says London is obliged to under their divorce deal. Sterling was under renewed pressure after the Irish government ministers met to dust off contingency plans in case disagreements between Britain and the EU trigger major trade disruption. Immediate resistance can be seen at 1.3546 (38.2%fib), an upside break can trigger rise towards 1.3610(50%fib).On the downside, immediate support is seen at 1.3399(23.6%fib), a break below could take the pair towards 1.3355(23rd Dec 2020 low).

 USD/CAD: The Canadian dollar weakened on Wednesday to its lowest level in nearly a month against its U.S. counterpart, as oil prices fell and accelerating U.S. inflation data added to pressure on the Federal Reserve to hike interest rates sooner than expected. The price of oil, one of Canada's major exports, settled3.3% lower at $81.34 .The loonie was trading 0.4% lower at 1.2491 to the greenback, or 80.06 U.S. cents, after touching its weakest intraday level since Oct. 12 at 1.2497. Canada's inflation report for October is due next Wednesday, which could offer clues on the Bank of Canada policy outlook. Immediate resistance can be seen at 1.2527(50%fib), an upside break can trigger rise towards 1.2582(61.8%fib).On the downside, immediate support is seen at 1.2461 (5 DMA), a break below could take the pair towards 1.2412 (23.6%fib).

USD/JPY: The dollar strengthened against the Japanese yen on Wednesday after U.S. consumer prices surged to their highest rate since 1990, fueling speculation that the Federal Reserve may raise interest rates sooner than expected. While the Fed last week restated its belief that the current inflation surge would be short-lived, many investors worry that underestimating price increases could prove to be a costly policy mistake.At   (1640 GMT), the dollar index , which measures the greenback against six major currencies, was up 0.60% at 94.5230 . Against Japan's yen the greenback was last up 0.85% to 113.86 yen after touching a session high of 113.94.  Strong resistance can be seen at 114.18 (23.6%fib), an upside break can trigger rise towards 114.61(Higher BB).On the downside, immediate support is seen at 113.62(38.2% fib), a break below could take the pair towards 113.15(50%fib).

Equities Recap

European luxury stocks were the top decliners in London, Paris and Milan on Wednesday after data showed China's factory inflation jumped in October, heightening stagflation concerns in the country, a top buyer of high-end products.

UK's benchmark FTSE 100 closed up by  0.91 percent, Germany's Dax ended up by 0.17 percent, France’s CAC finished the day down by 0.03 percent.                         

Wall Street closed sharply lower on Wednesday as surging consumer prices curbed investor risk appetite, and stoked worries of a protracted wave of red hot inflation.

Dow Jones closed down  by  0.66% percent, S&P 500 closed down by 0.82 % percent, Nasdaq settled down  by 1.66%     percent.

Treasuries Recap

U.S. Treasury debt yields shot higher on Wednesday as the market was battered by the biggest annual gain in U.S. consumer prices in 31 years and a weak 30-year bond auction.

The benchmark 10-year yield had its biggest session climb since Feb. 25, jumping as high as 1.592%. It was last up 12.4 basis points at 1.5733%. The 30-year yield , which hit 1.988% following the auction, was last 10.6 basis points higher at 1.9266%.

Commodities Recap

Gold hit a five-month high on Wednesday, leading a rally in precious metals, as data showed U.S. consumer prices surged last month, burnishing bullion’s appeal as an inflation hedge.

Spot gold was up 0.7% at $1,843.31 per ounce by 13:45 p.m. ET (1845 GMT), after hitting its highest since June 15 at $1,868.20 earlier in the session.U.S. gold futures settled 1% higher at $1,848.3.

Oil prices slumped, hit by the surging dollar, after President Joe Biden said the U.S. administration was looking for ways to reduce energy costs amid a broader surge in inflation.

Brent crude fell $2.14 to settle at $84.64 a barrel. U.S. crude lost $2.81 to settle at $81.34 a barrel.U.S. gold futures settled 1% higher at $1,848.30 an ounce.

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