Gold gains for 6th day running

“Always look for the fool in the deal. If you don’t find one, it’s you.” — Mark Cuban

 

 

HEADLINES

 

 

• Dollar climbs after hot U.S. inflation; euro dips
• Gold scores a 6th straight rise, settles at highest since June
• Oil bounces around, settles up despite strong dollar, near $83/barrel
• S&P 500, Nasdaq rise on chipmaker boost; Disney weighs on Dow
• Elon Musk sells around $5 billion of Tesla stock
• USD/CAD to surge above 1.30 next year as the Fed will hike more than the BoC – CIBC

 

 

FOREX

 

 

Dollar climbs after hot U.S. inflation; euro dips

 

The dollar rose to almost 16-month highs against the euro and other currencies on Thursday, after the hottest U.S. inflation reading in 30 years encouraged bets that the Federal Reserve would tighten monetary policy faster than expected. Second-day inflation-related bets and closure of the U.S. bond market for the Veterans Day holiday likely reduced trading volume and amped up price volatility, according to FX Street.

 

 

COMMODITIES

 

 

Gold scores a 6th straight rise, settles at highest since June

 

Gold futures on Thursday scored a sixth-straight session gain, with concerns over the surge in U.S. inflation prompting prices to settling at their highest since June. Prices for the precious metal added to gains the day before when they climbed in the wake of the U.S. inflation report.

 

Oil bounces around, settles up despite strong dollar, near $83/barrel

 

Oil prices settled slightly higher on Thursday, as the market grappled with a stronger U.S. dollar along with concern over increasing U.S. inflation, and after OPEC cut its 2021 oil demand forecast due to high prices.

 

 

STOCKS

 

 

S&P 500, Nasdaq rise on chipmaker boost; Disney weighs on Dow

 

The S&P 500 and Nasdaq rebounded from two days of declines on Thursday as beaten-down chipmakers led gains, but losses in Walt Disney due to slowing subscriber growth in its streaming video service weighed on the Dow.

 

Elon Musk sells around $5 billion of Tesla stock

 

Tesla CEO Elon Musk sold nearly $5 billion in Tesla stock, according to financial filings out Wednesday evening. He still holds more than 166 million shares.

His trust sold more than 3.5 million shares worth over $3.88 billion in a flurry of trades carried out Tuesday and Wednesday. Those transactions were not marked as 10b5, meaning they were not scheduled sales.

 

 

ANALYSIS

 

 

USD/CAD to surge above 1.30 next year as the Fed will hike more than the BoC – CIBC

 

“With the US seeing more wage and price inflation, and ahead of Canada in its GDP recovery, we have the Fed hiking a bit more than the BoC (150bps in total) over 2022-23.”

“We see USD/CAD drifting above the 1.30 mark next year, as it becomes clear that Canada's central bank will not be outgunning the Fed, and as oil prices retreat from recent highs.”

“Softer crude prices and a return to Canada's usual travel deficit as tourism restarts will weigh on the country's trade balance, which has been supportive for the loonie in recent quarters.”

 

 

CHART

 

 

Tesla – Weekly Candlesticks

Source: GKFX Prime Metatrader 4

TSLAUS has reached the 86 level on the weekly RSI that has been associated with multi-week pullbacks in the price. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.reuters.com/article/global-forex/forex-dollar-climbs-after-hot-u-s-inflation-euro-dips-idUSL1N2S22BD
https://www.fxstreet.com/news/usd-cad-to-surge-above-130-next-year-as-the-fed-will-hike-more-than-the-boc-cibc-202111111318
https://www.reuters.com/article/usa-stocks/us-stocks-sp-closes-little-changed-as-chips-boost-nasdaq-in-muted-holiday-trading-idUSL1N2S22BJ
https://www.reuters.com/business/energy/oil-prices-steady-after-falling-signs-us-may-release-more-reserves-2021-11-11/
https://www.msn.com/en-us/money/markets/gold-scores-a-6th-straight-rise-settles-at-highest-since-june/ar-AAQzJ3x
https://www.cnbc.com/2021/11/10/elon-musk-sells-1point1-billion-of-tesla-stock.html