European Central Bank Vice President Luis de Guindos said yesterday, Thursday, November 24, that inflation in the eurozone will hover around its current level over the next few months before starting to decline at some point during the first half of 2023.
And European stocks rose at the close of trading yesterday, Thursday, November 24, for the third day in a row, supported by the Fed’s hint to slow the rate hike.
The German DAX index rose by 0.78% to 14,539 points, the French CAC index rose by 0.42% to 6,707 points, while the British FTSE index settled at 7,466 points.
Kremlin spokesman Dmitry Peskov also said that Moscow does not plan to supply oil and gas to countries that support imposing a cap on Russian crude prices.
Gold prices rose slightly today / Friday, November 25, thus achieving a weekly gain after they received support from the decline in the dollar due to indications that the US Federal Reserve may soon slow down the pace of raising interest rates.
On the occasion of Thanksgiving in the United States, today there will be an early closing of most of the assets traded.
Dollar index (USDX)
The dollar continued to decline strongly – for the fourth day in a row – during today’s trading, reaching a very low point for the first time in months.
Today, Friday, November 25, the dollar fell by more than 0.17%, after declining 1.02% yesterday.
Technically, the dollar index is still weak and is expected to decline further if it remains below 105.75 levels.
Pivot point: 105.75
British Pound (GBPUSD)
GBPUSD is mostly supported by the decline in the US dollar. We are witnessing buying momentum on the GBP lately. As a result, the pair rose above 1.21 for the first time since the first half of August 2022.
Sterling received a buying momentum after comments from Bank of England Deputy Governor Ramsden. He said he is in favor to further restriction. While he said that a cut in the bank interest rate could be considered if the economy develops in a different way than expected and inflation ceases to be a concern.
Technically, today we notice a correction near the pivot point areas at 1.2095, and we monitor the weekly closing for more clarity in the general direction.
Pivot point: 1.2095
Spot Gold (XAUUSD)
Spot gold rose 0.2% to $1,758.41 an ounce and has risen 0.5% so far this week.
Minutes of the Fed’s meeting on Wednesday showed that a “significant majority” of Fed policymakers agreed that it “would soon be appropriate” to slow the pace of interest rate hikes, and put the dollar on a weekly downward trajectory, making gold cheaper for overseas buyers.
Pivot point: 1,754
US Crude (USOUSD)
European Commission President Ursula von der Leyen said during a visit to Finland Thursday, November 24, that the European Union is preparing a ninth package of sanctions against Russia in response to its attack on Ukraine.
Von der Leyen said in a press conference, “We are working hard to target Russia in areas that hurt it to undermine its ability to continue the war on Ukraine, and I can announce today that we are working with all our energy to prepare a ninth package of sanctions.”
On the other hand, Peskov said in statements yesterday, Thursday, November 24: We stand by the President Vladimir Putin, and we will not supply oil and gas to countries that intend to set a cap on oil prices and countries that will join this initiative.
The Group of Seven is discussing setting a cap on the price of Russian oil transported by sea at a level between $65 and $70 a barrel, although the European Union governments have not yet agreed on the price.
Pivot point: 77.75