What you need to take care of on Monday, November 1:
The American dollar surged on Monday, posting uneven gains against most major rivals. Tepid Chinese data released at the beginning of the day, alongside continued signs that global inflation is out of control, fuel risk-averse trading.
At the beginning of the day, Australia reported that TD Securities Inflation was up by more than anticipated in October, now at 5.2% YoY from 5% in the previous month. Later in the day, the Eurozone published the preliminary estimate of the October Consumer Price Index, up at an annualized pace of 10.7%, a new record.
Central banks have adopted aggressive quantitative tightening to bring inflation down, but so far, there are no signs that price pressures have begun receding. The Bank of Canada and the Reserve Bank of Australia have already started easing the pace of tightening.
The Reserve Bank of Australia will open the central banks’ calendar on Tuesday and is expected to announce a modest 25 bps rate hike despite inflation jumping to a two-decade high in the third quarter of the year. The US Federal Reserve will announce its decision on Wednesday, and market players anticipate a 75 bps hike and hint it will start slowing the pace of rate hikes in December. Finally, the Bank of England will have a Super Thursday, with the latest political turmoil in the United Kingdom generating uncertainty on what Governor Andrew Bailey and co can do this time. Finally on Friday, the US will publish the October Nonfarm Payrolls report.
In the UK, Prime Minister Rishi Sunak and Chancellor Jeremy Hunt were on the wires, anticipating that it is unavoidable that all Britons would pay more taxes.
The EUR/USD pair lost the 0.9900 threshold and trades near a daily low of 0.9872, while GBP/USD trades around 1.1470. Commodity-linked currencies recovered some ground ahead of the close as Wall Street trimmed most of its early losses. AUD/USD trades just below 0.6400, while USD/CAD is down to 1.3620.
The USD/JPY pair advanced and is now trading around 148.60, while USD/CHF hovers around parity.
Gold trades at its lowest in a week, now hovering around $1,635, while crude oil prices edged lower and WTI changes hands at $86.40 a barrel.
Binance Coin price pumps on improving fundamentals – forecasting a bullish move to $380
Like this article? Help us with some feedback by answering this survey:
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
Pound Sterling edges higher after BoE rate cut, focus shifts to Governor Bailey – LIVE
The Bank of England (BoE) lowered the policy rate by 25 basis points to 4.75% following the November meeting, as expected, and said that the budget is forecast to boost inflation. BoE Governor Bailey will speak on the policy outlook in a press conference next.
EUR/USD clings to gains above 1.0750 amid US Dollar pullback
EUR/USD holds higher ground and trades above 1.0750 on Thursday. The pair finds support from a broad US Dollar retreat, as traders unwind their Trump win-inspired USD longs ahead of the Federal Reserve's highly-anticipated policy announcements.
Gold recovers above $2,660, awaits Fed rate decision
Gold recovers slightly following Wednesday's sharp decline and trades above $2,660. The benchmark 10-year US Treasury bond yield struggles to push higher after Trump-inspired upsurge, allowing XAU/USD to hold its ground ahead of the Fed policy decisions.
Federal Reserve expected to deliver 25 bps interest-rate cut, shrugging off Trump victory
The Federal Reserve is widely expected to lower the policy rate after Donald Trump won the US presidential election. Fed Chairman Powell’s remarks could provide important clues about the rate outlook.
Outlook for the markets under Trump 2.0
On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.