Forex Today: Dollar bulls on pause ahead of critical central banks’ announcements

Valeria Bednarik FXStreet

What you need to know on Tuesday, November 2:

The greenback edged lower against most major rivals on Monday, but its bullish potential remains intact. Market participants were cautiously optimistic pushing global equities higher and favoring a modest uptick in government bond yields. However, several central banks will unveil fresh decisions on monetary policy, including the RBA on Tuesday, US Federal Reserve on Wednesday and the Bank of England on Thursday. All of them are expected to introduce changes to their monetary policies, amid persistent inflationary pressures.

The EUR/USD pair trades around 1.1600, while GBP/USD remained under pressure in the 1.33660 price zone.

The positive tone of equities helped AUD/USD to recover above the 0.7500 threshold heading into the RBA’s monetary policy announcement. The USD/CAD pair trades around 1.2369.

Commodities are ending Monday with gains, with gold trading around $1,792 a troy ounce and WTI flirting with $84.00 a barrel.

Wall Street advanced, although gains were modest. Treasury yields ticked higher, although that on the 10-year Treasury note stood below 1.60%.

Shiba Inu prints bullish continuation pattern towards $0.00011

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold bounces off lows, back above $5,100

Gold remains on the defensive, eroding part of the recent multi-day advance and managing to trade back above the $5,100 mark per troy ounce on Tuesday. The precious metal initially dropped just below the critical $5,000 threshold on the back of the persistent strength of the Greenback, higher US Treasury yields across the curve and investors' repricing of Fed rate cuts.