The last two weeks have seen the USD under pressure as the Federal Reserve plans to slow hike pace – a stance that has improved sentiments within the financial markets. So, the USD opened yesterday on a back foot and still dropped over the European session following the release of the latest European PMI figures.

However, we witnessed an anticipated risk reversal before the United States session began, which saw the USD soaring while risk assets tumbled. That followed the United States non-manufacturing data, which indicated a notable activity expansion within the service sector.

Meanwhile, it was a surprise as the services PMI dipped into contraction early on the day, whereas ISM manufacturing fell in contraction over the previous week. So, the road with the slightest obstacle was purchasing USD, which has seen massive selling over the last two weeks, discharging the overbought situations.

A debate about when or if the Federal will have to move beyond 5% is brewing. And that has hurt sentiments. For instance, crude Oil has lost over $5.

Today’s Market Anticipations

Today began with Japan’s Household Spending and Average Cash Earnings, which indicate cooling from the previous data, primarily spending. Meanwhile, the RBA (Reserve Bank of Australia) remained the highlight of today as it executed another rate increase.

That was the 8th consecutive rate hike of 25bps, pushing them to 3.10% from 2.85%. Meanwhile, the latest United Kingdom PMI data showed yet another slowdown, whereas later will have the Canadian and US trade balance numbers for November. So, market players should watch the economic calendar.

Forex Signals Update

Volatility continued yesterday as the USD soared and sentiment switched to negative. The USD started with a decline before sudden reversals emerged to catch us in the wrong place with some trading indications before we gained ground, translating to some winning indicators in commodities during the day’s second day.

Turning Pessimistic on Gold

November saw gold turning bullish after exhibiting bearishness since peaking beyond $2,000 in March. Buyers pushed beyond the 50 Simple Moving Average on the 24hr chart, which acted as resistance, and XAU-USD hit $1,810 today, meeting the 200 Simple Moving Average. Meanwhile, a reversal emerged after the United States ISM services data & lost about $45. That welcomed bearishness and profit-booking on the sell Gold signal.

Selling WTI Oil Dip

Positive sentiment saw Crude Oil turning bullish yesterday, soaring to $82.70. however, it reversed after the United States ISM services data and saw massive dips, with smaller MAs like the 50 Simple Moving Average and the 20 SMA serving as resistance. Experts opened a ‘sell’ signal at these moving averages, and continued declines saw it closing in profit.

Cryptocurrency Update

The crypto market resumed its risk state after the FTX challenges were over. Cryptocurrencies have crawled higher since mid-November amid weak USD and positive sentiment. However, a bearish reversal emerged yesterday, though it was not as massive as in the commodities and forex markets.

BTC Failing at 200-SMA

Bitcoin pushed beyond the 50 & 100 Simple Moving Averaged, which served as resistance on its 4hr chart as sentiment improved after FTX’s implosion. Experts opened a buy Bitcoin signal beneath $17K, and buyers pushed prices beyond $17.4K yesterday to hit the 4Hr 200 Simple Moving Average. The MA rejected the upside as the dollar buyers emerged, and Bitcoin dropped under $17,000 again.