This is what you need to know to trade today Friday, November 5:
The dollar entered a consolidation phase early Friday after posting impressive gains against its main rivals on Thursday. Investors still have several high-level data releases to deal with ahead of the weekend. Germany’s September industrial production data fell 1.1% in September, when a 1% rise was expected. Now euro zone retail sales are expected also for September. In the second half of the day, the October employment report from Canada and the United States will be closely watched by market participants.
With the dust finally settling after the Federal Reserve’s policy announcements, the greenback began to gain traction with increasingly apparent monetary policy divergences among major central banks. The US dollar index, which tracks the dollar’s performance against a basket of six major currencies, hit new multi-week highs near 94.50. Investors expect that the Non-Farm Payrolls rise by 425,000 in October after a dismal 194,000 in September. Performance of 10-year US Treasuries It moderated its Fed-inspired gains, but remains afloat above 1.5%. Meanwhile, the Bank of England decided to leave its monetary policy rate unchanged at 0.1% and caused the British pound to suffer heavy losses across the board.
The S&P 500 index It hit a new all-time high on Thursday and US stock index futures are trading flat early in the European session. Later in the day, the US House of Representatives will vote on US President Joe Biden’s Build Back Better Act. Meanwhile, various outlets reported that the United States and China plan to reopen consulates that were closed last year.
The EUR/USD It fell sharply and was just shy of the 2021 low of 1.1524 on Thursday before staging a modest correction. Ahead of the data, the pair is moving sideways around 1.1550.
GBP/USD It lost 1.3% on Thursday and posted its biggest one-day loss in more than a year on its way to a new monthly low of 1.3470. Currently, the cross is consolidating its losses around 1.3500.
USD / CAD it rose to its highest level in more than two weeks on the strength of the dollar on Thursday. The unemployment rate in Canada is expected to remain unchanged at 6.9% in October with the net change in employment at + 19.3K.
The oro capitalized on falling US Treasury yields and staged a decisive rebound. At time of writing, the XAU / USD is trading slightly below the key $ 1,800 level.
Cryptocurrencies: Bitcoin continues to float above $ 60,000 and Ethereum remains above $ 4,500.