Forex Today: Fear will continue to be the main market motor
|Here is what you need to know on Monday, November 2:
The greenback finished October with gains against most major rivals, backed by a sour market’s sentiment. Concerns related to the number of new coronavirus cases in Europe and the US, alongside uncertainty about the US presidential election, were behind the dismal mood.
The EUR/USD pair closed the week at November lows at 1.1640, as the ECB anticipated more stimulus coming in December, forecasting another economic setback in the last quarter of the year, as restrictive measures were announced in France, Germany, Spain and Italy, in an attempt to curb contagions.
The GBP held above 1.29 against the American currency but may start the week gapping lower, as UK Prime Minister Boris Johnson announced a nationwide one-month lockdown on Saturday, starting on November 2.
The Japanese yen strengthened against the greenback due to its safe-haven condition, given up some gains at the end of the week amid resurgent government bond yields. The yield on the benchmark 10-year Treasury note finished the week at 0.87%.
Equities remained under pressure, with Wall Street closing in the red on Friday. US indexes have their worst weekly performance since March.
Commodities also edged lower. Gold settled at $1,878 a troy ounce, while WTI finished at $35.70 a barrel.
Bitcoin Price Analysis: BTC/USD retreats after jumping to 33-month highs above $14,000
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.