Here is what you need to know on Tuesday, November 11:
Pound Sterling comes under bearish pressure in the European morning Tuesday as markets assess the UK labor market data. In the second half of the day, NFIC Business Optimism Index for November and the weekly ADP Employment Change data will be featured in the US economic calendar.
For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
The UK's Office for National Statistics reported that the ILO Unemployment Rate climbed to 5% in the three months to September from 4.8%. This print came in worse than the market expectation of 4.9%. Other details of the publication showed that the Employment Change in this period was -21K, while the annual wage inflation, as measured by the Average Earnings Including Bonus, was 4.8%, down from 5%. After closing the fourth consecutive day in positive territory on Monday, GBP/USD turns south after this data and was last seen losing 035% on the day at 1.3130.
Wall Street's main indexes rallied on Monday as investors cheered the imminent reopening of the US government. Early Tuesday, US stock index futures trade mixed, while the US Dollar (USD) Index clings to marginal gains near 99.70 after closing virtually unchanged on Monday. The funding bill, which was approved by the Senate, will head to the House of Representatives for a final approval on Wednesday.
EUR/USD struggles to find direction and continues to move sideways at around 1.1550 early Tuesday. Business sentiment data from Germany and the Eurozone will be watched closely by market participants. Additionally, several European Central Bank (ECB) policymakers, including ECB President Christine Lagarde, are scheduled to deliver speeches later in the day.
New Zealand's inflation expectation on a 12-month time frame rose to 2.39% in the fourth quarter from 2.37% in the third quarter, and it was unchanged at 2.28% on a two-year time frame, the Reserve Bank of New Zealand’s (RBNZ) latest monetary conditions survey showed on Tuesday. NZD/USD edges lower in the European morning on Tuesday and trades below 0.5650.
Japan's Economics Minister Minoru Kiuchi said on Tuesday that he is aware of high inflation weighing on private consumption, and added that the weak Japanese Yen (JPY) raises prices via increased import costs. After gaining nearly 0.5% on Monday, USD/JPY stays in a consolidation phase and trades above 154.00.
Gold started the week on a bullish note and rose nearly 3% on a daily basis. XAU/USD holds its ground early Tuesday and trades comfortably above $4,100.
