Here is what you need to know on Tuesday, November 30:

With trading volumes returning to normal levels following the Thanksgiving break, the dollar gathered strength during the American trading hours on Monday but the sharp decline witnessed in the US Treasury bond yields caused the currency to lose interest. November (preliminary) Consumer Price Index (CPI) data from the euro area will be looked upon for fresh impetus ahead of the Conference Board’s November Consumer Confidence Index data from the US. FOMC Chairman Jerome Powell will be testifying before the US Senate Committee on Banking, Housing, and Urban Affairs on coronavirus and CARES Act.

In his prepared opening testimony, Powell will say that factors pushing inflation upward are expected to linger “well into next year.” Regarding the Omicron variant, Powell will acknowledge that the new variant is posing downside risks to employment and economic growth while increasing the uncertainty surrounding inflation.

The benchmark 10-year US Treasury bond yield is currently losing more than 2% on the day at 1.46% and US stock index futures trade in the negative territory, suggesting that markets have turned risk-averse in the early European session on Tuesday. Several reports are suggesting that current vaccines are likely to be ineffective against the new coronavirus variant and investors are concerned about a slowdown in global economic activity. 

EUR/USD is edging higher in the early European trading hours on Tuesday and holding above 1.1300. Eurostat is expected to report that the Consumer Price Index in the euro area declined to 3.7% on a yearly basis in November from 4.1% in October.

GBP/USD clings to modest recovery gains above 1.3300. There won’t be any high-tier macroeconomic data releases from the UK and the dollar’s valuation is likely to continue to drive the pair’s action.

USD/CAD continues to push higher as the commodity-sensitive loonie weakens amid falling crude oil prices. Ahead of September Gross Domestic Product data from Canada, the pair is trading at its strongest level since late September near 1.2800. In the meantime, the barrel of West Texas Intermediate is trading below $68 for the first time since September 10.

USD/JPY turned south and is currently testing the 113.00 support area after failing to climb above 114.00. Falling US T-bond yields continue to weigh on the pair.

Gold is having a difficult time rising above $1,800 but the yellow metal’s losses remain limited amid renewed dollar weakness.

Cryptocurrencies: Following a three-day rebound, Bitcoin is edging lower and trading below $57,000. Ethereum seems to have gone into a consolidation phase below $4,500.

This article was originally published by Fxstreet.com.Read the original article here.

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