Dollar rally cools as consumer sentiment hits 10-year low

Forex news for North American trade on November 12, 2021:

Markets:

Gold up $3 to $1865US 10-year yields up 2 bps to 1.57%WTI crude oil down 78-cents to $80.81S&P 500 up 32 points to 4681
AUD leads, EUR lags

The UMich survey has a spotty recent history but a 10-year low is tough to ignore and it opened the door for a relief rally in the currencies that were beaten up by the dollar this week.

The dollar fell around 30 pips against the field after the data, albeit at a different pace on different fronts. The pound was also aided by a better brexit tone from Irish border negotiators.

The euro was unable to take advantage of the softening dollar as it chopped near the lows of the week before finishing near 1.1445. That marks a weekly close below the key 1.1500 level.

Cable and AUD/USD erased Thursday’s losses to show a bit more lift but both struggled mightily this week.

Improving equity sentiment was also a tailwind for risk trades. Futures had pointed to a 0.3% but we finished the day up 0.7% in the S&P 500 and more in the Nasdaq as no dip is too small to buy for this market.

Gold finished off a strong week by showing some resilience. It fell to $1845 in Asia in a retest of the key breakout level but it held before climbing back to $1864.

Forex news for North American trade on November 12, 2021: