Dollar stabilizes, focus on European and US data

This is what you need to know to trade today Friday October 29:

The dollar faced heavy selling pressure on Thursday after the first estimate from the US Bureau of Economic Analysis showed the US economy grew just 2% in the third quarter. The shared currency outperformed its rivals when the European Central Bank adopted a cautious tone regarding inflation expectations. The greenback appears to have found stability early in the European session as investors await euro area GDP and inflation data and German growth figures. Later in the day, the Personal Consumption Spending Inflation Report and the University of Michigan Consumer Sentiment Index will focus on the US economic calendar.

The US Dollar Index (DXY) fell more than 0.5% on Thursday as disappointing GDP data prompted investors to reassess the Federal Reserve’s schedule. Currently, the DXY is consolidating its losses around 93.50.

Wall StreetMajor US stock indices posted impressive gains on Thursday as investors remain hopeful that the Fed will continue to support the economy for longer than expected. US equity futures, however, are losing between 0.3% and 0.9% in recent hours, suggesting that there could be a deep correction before the weekend.

After falling for four days, the yield on US Treasuries at 10 years It rose more than 2% on Thursday and continues to push higher on Friday, helping the dollar show some resilience against its rivals.

EUR/USD it gained more than 70 pips on Thursday and reached its strongest level in a month at 1.1693. Although ECB President Christine Lagarde voiced her opposition to the market betting on an ECB rate hike, she acknowledged that high inflation is likely to last longer than initially expected. The shared currency could increase its strength again should Friday’s data show that economic activity in the euro zone remains healthy in the third quarter. For now, he is moving laterally.

GBP/USD it remains below 1.3800 after Thursday’s recovery. Renewed Brexit concerns could make it harder for the British pound to attract investors. The BBC reported late Thursday that France seized a British trawler and fined another amid an ongoing dispute over post-Brexit fishing rights.

The USD / CAD It failed to capitalize on the broad weakness of the dollar, as falling crude prices weighed on the commodity-related loonie. August GDP data from Canada will be analyzed for fresh momentum.

One more time, gold it failed to clear the $ 1,800 zone on Thursday limited by rising US bond yields. Last week, XAU / USD volatility increased at the London open and similar action could be observed towards the end of the European session.

cryptocurrencies: Bitcoin managed to regain $ 60,000 on Thursday and is looking to regain bullish momentum. Ethereum it remains afloat near all-time highs and a break above $ 4,400 could trigger strong fluctuations.