Communications from FOMC officials have remained hawkish in the past few days, reinforcing the view that US rate cuts would take place at only a rather gradual pace.
Fed members Schmid, Logan and Kashkari have all talked up the strength of the US labour market in recent days, while expressing a preference for a more gradual approach to future policy easing.
This has been a clear positive for the greenback, which continued to trade higher against almost every currency globally since the start of the month. The next few days will see a handful of economic data releases in the US, including home sales (Wednesday), business activity PMI figures (Thursday) and durable goods orders (Friday).
The main focus remains on the election, however, with markets placing an increasingly heavy emphasis on the latest opinion polls, particularly out of the swing states. According to 270towin, Trump is now ahead in 5 of the 7 key battleground states, albeit his advantage stands at less than half a percent in three.
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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AUD/USD continues soft as markets digest employment data
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EUR/USD: Further declines remain well in store
EUR/USD briefly tested fresh year-long lows on Thursday, piercing the 1.0500 handle for the first time in 54 weeks. A lack of meaningful EU data is doing very little to provide support for the Euro, and Fiber bids continue to tilt in favor of the safe haven US Dollar.
Gold falls as Powell signals Fed's patience on lowering rates
Gold recovers some ground on Thursday yet remains trading below its opening price for the fifth consecutive day, undermined by the Greenback’s advance for its own fifth consecutive day. A slightly hot inflation report in the US and solid jobs data sponsored XAU/USD’s leg down toward the 100-day SMA.
Ethereum Price Forecast: ETH could rally to $4,522 despite mixed on-chain flows among investors
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Trump vs CPI
US CPI for October was exactly in line with expectations. The headline rate of CPI rose to 2.6% YoY from 2.4% YoY in September. The core rate remained steady at 3.3%. The detail of the report shows that the shelter index rose by 0.4% on the month, which accounted for 50% of the increase in all items on a monthly basis.
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