What to watch out for on Monday, November 1:
The US dollar rose on Monday, posting mixed gains against most of its rivals. The little chinese data released earlier in the day, coupled with continued signs that global inflation is out of control, fuel risk-off trading.
Earlier in the day, Australia reported that Equity Inflation rose more than expected in October to 5.2% yoy from 5% in the previous month. Later, the Eurozone published the preliminary estimate of the Price Index at Consumption October, with an annualized rise of 10.7%, a new record.
Central banks have adopted aggressive quantitative tightening to reduce inflation, but so far there are no signs that price pressures have started to ease. The Bank of Canada and the Reserve Bank of Australia have already started to ease the pace of tightening.
The Reserve Bank of Australiawill open central banks’ calendar on Tuesday and is expected to announce a modest 25 basis point rate hike, despite inflation soaring to a two-decade high in the third quarter of the year. The US Federal Reserve will announce its decision on Wednesday, with market players anticipating a 75 basis point hike and hinting that it will start to slow the pace of rate hikes in December. Lastly, the Bank of England will have a super Thursday, with the latest political turmoil in the UK creating uncertainty about what Governor Andrew Bailey and company can do this time. Finally, on Friday, the United States will release the Non-Farm Payrolls report for October.
In the United Kingdom, the Prime Minister, Rishi Sunak, and the Chancellor, Jeremy Hunt, were on the air, anticipating that it is inevitable that all Britons pay more taxes.
EUR/USD missed the 0.9900 threshold and is trading near a daily low of 0.9872, while GBP/USD is trading around 1.1470. Commodity-linked currencies recovered some ground before the close as Wall Street trimmed most of its early losses. AUD/USD is trading just below 0.6400, while USD/CAD dips to 1.3620.
The USD/JPY pair advanced and is now trading around 148.60, while the USD/CHF hovers around parity.
Gold is trading at its lowest level in a week, now hovering around $1,635, while crude oil prices slide lower and WTI changes hands at $36.40 a barrel.
Binance coin prices rise on improving fundamentals: a move higher to $380 is anticipated.
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Source: Fx Street
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