• Bank of England Chief Economist Huw Pill speaking in parliament on Tuesday
• European Central Bank speakers Tuesday include Mc Caul, Centeno
• FX option expiries for 26 November 10am New York cut
• Here is a summary of the policies Trump has said he will pursue in his upcoming 2nd term
• China says ‘No one will win a trade war’ after Trump tariff threat
• Canada PM Trudeau and Trump spoke about trade and border security.
• Financial Times: Russia poised for cyber war in response to UK missile attacks
• Rhys Mendes, Deputy Governor, Bank of Canada, will speak on Tuesday
• Barclays notes BoJ’s December meeting now “live” after inflation data
• Shanghai Securities News says possibility of a RRR cut in December
• PBOC sets USD/ CNY reference rate today at 7.1910 (vs. estimate at 7.2357): 26 November
• Bank of Korea Expected to Hold Base Rate; USD Strength Cited as a Reason
• UK data – BRC Shop Price Index -0.6% y/y (prior -0.8%)
• China ambassador says US trade policy will impact China, other countries
• Now is probably a really great time to remember the market chaos of 2016-2020
• Trump threatens a 25% tariff on Mexico and Canada
• Japan October PPI Services (Corporate Services Price Index) 2.9% y/y (prior 2.6%)
• Here is some detail on Rumble allocating some of its cash reserves to Bitcoin
• MUFG says the US dollar drop is temporary – still well supported into year-end and beyond
• Fed’s Kashkari hasn’t given up hope on a December FOMC interest rate cut
• Goldman Sachs says Trump tariff escalation will delay inflation falling to target
• Chair of NATO’s Military Committee says business should prepare for a “Wartime Scenario”
• Rabobank look for EUR/USD to parity
• Why Is Bitcoin Performance Outstripping Lagging Ethereum?
• Deutsche Bank targets S&P 500 to 7,000 by the end of 2025
• European Union is proposing sanctions on Chinese firms aiding Russian invasion of Ukraine
• I jinxed it. The Russell 2000 closes below all-time high level by less than a point
• Forexlive Americas FX news wrap: Bonds buy Bessent, Middle East peace hopes weigh on oil
• Trade ideas thread – Tuesday, 26 November, insightful charts, technical analysis, ideas

The
USD jumped higher in early trade on the back of a Trump ‘tweet’
(a post on his own social network similar to Twitter called ‘Truth
Social’) where he threatened Canada and Mexico with a 25% tariff
and to add another 10% on top of China tariffs. It was only yesterday
that the nomination of Scott Bessent as Treasury secretary was
greeted with widespread expectations of a moderating influence on
Trump and the dollar got sold off. Well, that sell-off set
the stage for the sharp bounce back for the dollar on Trump’s
‘tweet’. I
don’t generally have much patience for the bleating sheep ‘manipulation’ crowd (you know who they are, they rarely shut up)
but today they were quiet. I guess their team are off-limits for accusations of manipulating markets?

Anyway,
back to the market. Major
FX across the board slumped against the resurgent US dollar,
particularly commodity currencies and most particularly CAD. USD/CAD
surged around two big figures (1.3975 – 1.4175 give or take a few
points either way) before stabilizing somewhat. As I update its had a
retrace towards 1.4100.

AUD
and NZD have retraced a little more of their respective drops.

Otherwise
there was not a lot of news nor data. Kashkari spoke, says thinking
about a December FOMC rate cut seems reasonable. Japanese services
PPI came in higher than expected. For once the yen wasn’t much of a
focus! Nevertheless, USD/JPY is lower on the session.

This article was written by Eamonn Sheridan at www.forexlive.com.