US data dump, FOMC Minutes to rock markets ahead of Thanksgiving break

The greenback stays resilient against its major rivals mid-week as the benchmark 10-year US Treasury bond yield holds above 1.6%. Investors await IFO surveys from Germany ahead of the pre-Thanksgiving data releases from the US, which will include Durable Goods Orders, PCE inflation, Q3 GDP (second estimate) and weekly Initial Jobless Claims. Later in the American session, the FOMC will release the minutes of its November meeting.

The US Dollar Index is moving sideways around 96.50 on Wednesday. On Tuesday, the 10-year US T-bond yield came within a touching distance of the critical 1.7% level before retreating during the Asian trading hours. Market participants will keep a close eye on the PCE inflation report, which could have an impact on the June 2022 Fed rate hike bets and yields. The FOMC Minutes is unlikely to offer any surprises regarding the inflation or the policy outlook since the meeting had taken place before the October Consumer Price Index (CPI) report. Wall Street’s main indexes closed modestly higher and US stock futures trade flat early Wednesday.

EUR/USD edged higher toward 1.1300 on the back of upbeat PMI data from the euro area and Germany on Tuesday but returned to the 1.1250 area early Wednesday. The pair stays dangerously close to 2021-lows that it set earlier in the week.

GBP/USD seems to have gone into a consolidation phase below 1.3400 following a three-day decline. European Commission Vice President Maros Sefcovic says that post-Brexit talks could drag into next year.

NZD/USD came under strong bearish pressure during the Asian trading hours on Wednesday and fell to its weakest level in more than a month near 0.6900. The Reserve Bank of New Zealand (RBNZ) hiked its policy rate by 25 basis points to 0.75% as expected. Commenting on the policy outlook, RBNZ Governor Adrian Orr said that they will take cautious steps and added that they can take their time following the decision to hike the cash rate.

USD/TRY gained more than 12% on Tuesday and skyrocketed to a new all-time high near 13.5. The Central Bank of the Republic of Turkey (CBRT) stays on the sidelines during the currency’s meltdown.

USD/JPY reached fresh multi-year tops above 115.00 on rising US T-bond yields and fluctuates in a tight range in the early European session.

Gold suffered heavy losses and broke below the key $1,800 area on Tuesday. XAU/USD is currently posting small recovery gains above $1,790 but the near-term technical outlook seems to have turned bearish.

Cryptocurrencies: Bitcoin continues to fluctuate below $60,000 as investors await the next catalyst. India’s cabinet will reportedly discuss cryptocurrency regulation later in the day. Ethereum is moving up and down in a narrow band above $4,000.

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