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Forex Today – Asian Session: Dollar Returns Strongly

What you need to know on Friday, November 5:

On Thursday, the US dollar is the overall winner, resuming its advance and reaching new weekly highs against high-yielding rivals. On the other hand, safe haven assets rose against the dollar, although without breaking any critical level.

The Bank of England had a monetary policy meeting and decided to leave the benchmark interest rate unchanged at 0.1%, disappointing markets that anticipated a rate hike and further boosting demand for the dollar. GBP / USD tumbled to 1.3470, ending the day around 1.3500.

The EUR / USD pair encountered sellers around 1.1615 for the third day in a row, and the bulls gave up, resulting in a test of 1.1527. AUD / USD briefly traded 0.7400, hovering around the level, while USD / CAD jumped to 1.2460, despite plummeting oil prices. WTI currently trades around $ 79.10 a barrel after OPEC + decided to keep its current production stable at 400,000 barrels per day.

Gold returned to its comfort zone just below 1.8000, currently trading at around $ 1,793.00 a troy ounce.

Central bankers are working hard to reduce inflation concerns. BOE Governor Andrew Bailey noted that “the warning signs are there, the bells are ringing, so to speak, so we have to watch this closely, and that’s what we’re doing,” but added that they still see medium-term inflation “stagnant”. On Wednesday, US Federal Reserve Chairman Jerome Powell delivered a similar message, repeating that inflation is high but is still expected to normalize without central bank intervention.

European equities benefited from a subdued BOE, ending the day higher. Wall Street was unable to follow suit and ended the mixed day.

Yields on US Treasuries fell, and the 10-year yield reached an intraday high of 1.60% to close to a daily low of 1,509%.

The latest report this week will be key as the US releases the Non-Farm Payrolls report.

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