Here is what you need to know on Thursday, October 31:
The Harmonized Index of Consumer Price (HICP) inflation data from the Euro area and the Personal Consumption Expenditures (PCE) Price Index readings from the US will be watched closely on the last day of October. The US economic docket will also feature weekly Initial Jobless Claims data.
The US Dollar (USD) came under modest bearish pressure in the second half of the day on Wednesday following mixed data releases. The Automatic Data Processing reported that employment in the private sector rose by 233,000 in October. This reading followed the 159,000 increase in September and surpassed the market expectation of 115,000 by a wide margin. On a negative note, the US Bureau of Labor Statistics' first estimate showed that the US' Gross Domestic Product (GDP) expanded at an annual rate of 2.8%, falling short of analysts' estimate of 3%. The USD Index edged lower and closed in negative territory. Early Thursday, the index holds steady slightly above 104.00.
The Bank of Japan (BoJ) announced early Thursday that it decided to keep its short-term interest rates target unchanged at 0.25% following the conclusion of its two-day monetary policy review. Speaking on the policy outlook in the post-meeting press conference, BoJ Governor Kazuo Ueda said that the impact of foreign exchange rates on prices has become larger than in the part, adding that firms are now more eager to hike wages and prices. "We will keep adjusting degree of easing if our economic, price outlook is to be realised," Ueda reiterated. After moving sideways on Tuesday and Wednesday, USD/JPY turned south following the BoJ event and was last seen trading deep in the red near 152.00.
Japanese Yen PRICE Today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.03% | -0.09% | -0.79% | 0.08% | -0.04% | -0.07% | -0.23% | |
| EUR | -0.03% | -0.12% | -0.81% | 0.06% | -0.07% | -0.09% | -0.26% | |
| GBP | 0.09% | 0.12% | -0.69% | 0.18% | 0.05% | 0.03% | -0.14% | |
| JPY | 0.79% | 0.81% | 0.69% | 0.86% | 0.76% | 0.68% | 0.54% | |
| CAD | -0.08% | -0.06% | -0.18% | -0.86% | -0.11% | -0.15% | -0.33% | |
| AUD | 0.04% | 0.07% | -0.05% | -0.76% | 0.11% | -0.02% | -0.22% | |
| NZD | 0.07% | 0.09% | -0.03% | -0.68% | 0.15% | 0.02% | -0.17% | |
| CHF | 0.23% | 0.26% | 0.14% | -0.54% | 0.33% | 0.22% | 0.17% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
During the Asian trading hours, the data from Australia showed that Retail Sales rose by 0.5% on a quarterly basis in the third quarter. Meanwhile, the NBS Manufacturing PMI in China came in at 50.1 in October, up from 49.8 in September. AUD/USD continues to move sideways below 0.6600 after ignoring these figures.
EUR/USD gained more than 0.3% on Wednesday, supported by the better-than-expected GDP and strong inflation readings from Germany. The pair stays relatively quiet in the European morning on Thursday and fluctuates in a narrow band at around 1.0850.
GBP/USD lost its traction and closed in the red on Wednesday as markets assessed the details of the Autumn Budget. The pair holds steady early Thursday and clings to small recovery gains above 1.2950.
Gold seems to have entered a consolidation phase after setting a new record-high of $2,790. At the time of press, XAU/USD was down 0.3% on the day at $2,780.
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EUR/USD holds above 1.0850 after EU inflation data
EUR/USD trades marginally higher on the day above 1.0850 in the European session on Thursday. The data from the Eurozone showed that the annual HICP inflation rose to 2% in October from 1.7% in September, helping the Euro hold its ground.
USD/JPY falls below 152.50 as markets assess BoJ policy decisions
USD/JPY stays under bearish pressure and trades below 152.50 on Thursday. The Bank of Japan (BoJ) left its policy setting unchanged but Governor Ueda noted that the impact of foreign exchange rate on prices had become larger than in the past.
Gold holds near $2,780, looks to US PCE Price Index for fresh impetus
Gold stays in a consolidation phase after setting a new record-high of $2,790. US political jitters and Middle East tensions might continue to act as a tailwind for the XAU/USD. Traders keenly await the release of the US PCE Price Index before placing fresh directional bets.
US core PCE inflation set to soften further, paving way for another Federal Reserve interest-rate cut
The core Personal Consumption Expenditures Price Index is expected to rise 0.3% MoM and 2.6% YoY in September. Markets expect the Fed to lower the policy rate by 25 basis points at the next policy meeting.
Bank of Japan holds rates steady amid signs of modest GDP growth
Monthly industrial production results have been mixed but generally indicate a modest recovery in third-quarter GDP. Clear guidance from the Bank of Japan remains elusive, with each upcoming meeting being pivotal.
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