FOREX TODAY: DESPITE A CAUTIOUS START TO THE INFLATION WEEK, THE US DOLLAR STRUGGLES

What you need know on Monday, November 27 is as follows:

Key inflation data from the US and the Eurozone later this week will likely cause investors to hold off on taking new directional bets, so major currency pairs continue to trade in a range until Monday.

Asian markets saw a decline in early trading on Monday due to investor apprehension over the People's Bank of China (PBOC)'s lack of clarity over its announcement of additional stimulus measures for private companies and the rise in respiratory ailments in China. The market sentiment was also affected by the ongoing reduction in China's industrial profits and the ambiguity surrounding the main central banks' interest rate forecast.

Additionally, markets are anticipating the return of US traders after their Thanksgiving holiday break. The risk barometer, US S&P 500 futures, is down 0.30% for the day.

However, the cautious market sentiment does not provide much solace for purchasers of US dollars, as selling activity in the Greenback resumes. This might be explained by the ongoing drop in the USD/JPY exchange rate. Additionally, it appears that the US Dollar is being negatively impacted by the recent deterioration in the yields on US Treasury bonds.

As of this writing, the US Dollar Index is trading at 103.30, down 0.10% for the day. The Index is returning to the 103.18 three-month low that was reached last Tuesday.

The current US dollar price

The US dollar's (USD) percentage change compared to a list of major currencies is displayed in the table below. In relation to the Japanese Yen, the US dollar was the weakest.

The major currencies' percentage movements relative to one another are displayed on the heat map. The quotation currency is selected from the top row, and the base currency is selected from the left column. For example, the percentage change shown in the box will indicate EUR (base)/JPY (quote) if you select the Euro from the left column and proceed along the horizontal line to the Japanese Yen.

In relation to the US dollar, the Australian dollar (AUD) and the New Zealand dollar (NZD) solidify their gains close to multi-month highs. While the NZD/USD pair is still capped above 0.6100, the AUD/USD pair is maintaining gains below 0.6600. In the absence of important US economic data on Monday, attention is focused on Tuesday's monthly Australian Retail Sales data and Reserve Bank of Australia (RBA) Governor Michele Bullock's address. The mid-tier US New Home Sales, however, can provide some trade advantages.

The USD/JPY maintains its negative trend from the previous week and closes 0.37% lower on the day after giving up on the 149.00 mark. October saw an annual increase in Japan's Corporate Service Price Index of 2.3%, compared to the 2.1% increase anticipated and the prior reading of 2.1%. After the Japanese statistics confirmed rumors that the Bank of Japan (BoJ) would end its negative interest rate policy in April, the Japanese Yen saw a new wave of bid activity.

Early in the European morning, the EUR/USD pair is once again trading close to the bids at 1.0950. Later in the day, Christine Lagarde, the president of the European Central Bank (ECB), will speak before the Committee on Economic and Monetary Affairs of the European Parliament.

As it enters its third day of gains, GBP/USD is testing two-month highs at 1.2630. Strong UK Services PMI data and the Bank of England's (BoE) hawkish rhetoric from last week continue to underpin the pound sterling.

After hitting a new six-month high of $2,018 earlier in the Asian session, the price of gold is now stabilizing. The shiny metal is still supported by a bullish technical setup on the daily chart and dovish Fed predictions.

While investors wait for the OPEC+ meeting, WTI continues to decline, approaching $75.00.