FOREX TODAY: FOCUS ON FEDSPEAK AS THE US DOLLAR REELS FROM THE USD/JPY SELL-OFF

What you need know on Tuesday, November 28 is as follows:

Tuesday saw mixed trading again followed Wall Street's bearish close and absorbed the heat from china. Beijing Stock Exchange had a 6% sell-off on Monday following the recommendation not to engage with problems with China's real estate.

Additionally, the markets are being evaluate in the US Federal Reserve's (Fed) of the country's important PCE inflation data this week.

However, the mood heading into European trade, which is consistent with a tiny increase in US S&P 500 futures. The prolonged rebound in the US bond market provides the benchmark of 10-year US Treasury bond returns below the crucial level of 4.40%. The US Dollar's vulnerability persists. But in the coming day, a number of Fed policymakers may give the Greenback some new direction. The US Dollar Index close to 103.07, the fresh three-month low that was hit earlier in the Asian session.

The current US dollar price

The US dollar's (USD) percentage change compared to a list of major currencies is displayed in the table below. In relation to the Canadian dollar, the US dollar was the weakest.

The major currencies' percentage movements relative to one another are displayed on the heat map. The quotation currency is selected from the top row, and the base currency is selected from the left column. For example, the percentage change shown in the box will indicate EUR (base)/JPY (quote) if you select the Euro from the left column and proceed along the horizontal line to the Japanese Yen.

The continuous sell-off in the USD/JPY pair is still hurting the US dollar. With Japan's inflation data indicating that the economy is moving closer to meeting its 2.0% price target stably, the Japanese yen continues to rise against the US dollar, stoking expectations that the BoJ would abandon its extremely dovish approach in 2024.

In relation to the US dollar, the Australian dollar (AUD) and the New Zealand dollar (NZD) maintain a range that is near to multi-month highs. While the NZD/USD is teasing 0.6100, the AUD/USD pair is supported above 0.6600.

The negative Australian monthly Retail Sales data, which revealed a decline of 0.2% in October compared to expectations for a 0.1% increase, prevents the Aussie pair from regaining its upward momentum. The Australian dollar (AUD) is also affected by Governor Michele Bullock of the Reserve Bank of Australia's (RBA) cautious comments. The central bank “has to be a ”little bit careful“ with using rates to bring down inflation without lifting unemployment,” according to Bullock.

In early European trading, the EUR/USD pair is battling 1.0950 after once again encountering resistance near 1.0965. Christine Lagarde, President of the European Central Bank (ECB), cautioned during her testimony on Monday before the Committee on Economic and Monetary Affairs of the European Parliament that “headline inflation may rise again slightly in the coming months.” Lagarde will make another appearance on Tuesday at the European Financial Reporting Advisory Group Conference in Brussels, where she will talk via pre-recorded video.

As it continues to maintain above 1.2600, the GBP/USD pair is retesting its two-month high of 1.2644 during the Asian session. The Bank of England (BoE) officials' attempts to uphold the narrative of “higher interest rates for longer” continue to support the value of the pound sterling.

While WTI is ranging around $75.00, the price of gold is challenging six-month highs of $2,018 early in Europe. The downside is limited by anticipation of additional oil supply cutbacks by OPEC and its allies (OPEC+). To decide whether to keep cutting output into next year, OPEC+ is scheduled to meet on November 30.