Forex Today: Optimism keeps fading, but US Dollar bulls hardly noted

What you need to take care of on Thursday, November 17:

The American Dollar gathered some strength in the last trading session of the day, ending the day mixed across the FX board. The greenback benefited from a worsening sentiment following Tuesday’s developments in the Ukraine-Russia war, but also from some fresh macroeconomic news.

Former President Donald Trump announced he will seek another term in the office, launching his Presidential run for 2024. The news came as no surprise, but still lifted concerns amid his views on the US relationship with China and other polemic issues.

 Donald Trump is seeking another term in office, hoping to become the first US president in 130 years to stage a comeback after being rejected by voters. Also, Republicans are close to winning control of the House of Representatives, adding 8 seats to a total of 217, just one short of the total needed to create a majority.

The United Kingdom published the annualized Consumer Prices Index, which came in at 11.1% in October when compared to 10.1% in the previous month, the highest reading in over four decades.

US Treasury yields reflect renewed growth-related concerns. The yield on the 2-year note is marginally higher, at 4.37%, while the 10-year note pays 3.70%, down roughly 9 bps on the day. The US published an upbeat Retail Sales report, which rose by 1.3% MoM in October, better than anticipated. The figure sent stocks down amid speculation inflation may resume its advance, forcing the US Federal Reserve to maintain the aggressive tightening path. The same reason backed yields gain at the shorter end of the curve.

Additionally, central banks’ officials are back on the wires. European Central Bank (ECB) Vice President Luis de Guindos said that the ECB would continue with policy normalisation and continue with the restrictive monetary policy, although Governing Council member Ignazio Visco added that reasons for a less aggressive ECB approach is gaining ground.

Across the pond, US Federal Reserve (Fed) Kansas President Esther George said the Fed should slow the pace of rate increases, noting that an economic contraction may be necessary to bring the services sector inflation down.

Finally, tensions arose in China as the country keeps reporting increased coronavirus contagions. Regional lockdowns spread across the country and even triggered protests in the streets, likely worsening the situation.

Wall Street spent the day in the red, following the lead of its overseas counterparts. Losses, however, have been limited.

Australia will publish October employment figures on Thursday. The country is expected to have added 15,000 new job positions in the month, while the unemployment rate is foreseen to tick higher, to 3.6% from the current 3.5%.

The EURUSD pair trades at around 1.0370, while GBPUSD is stable around 1.1890. Commodity-linked currencies suffered the most, with AUDUSD down to the 0.6720 region and USDCAD trading at 1.3230.  There was little action around safe-haven currencies, with USDCHF and USDJPY confined to tight intraday ranges and settling at 0.9440 and 139.60, respectively.

Gold consolidated gains and held within familiar levels, now trading at around $1,773 a troy ounce, while crude oil prices edged lower, with the barrel of WTI changing hands at $85.50.