Forex Today – Asian Session: US Non-Farm Payrolls Report to End a Busy Week

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What to watch for on Friday, November 4:

The US dollar continued its post-Fed rally and hit new all-time highs against most of its major rivals. Rising government bond yields underpinned the dollar as the 2-year Treasury yield hit its highest level since 2007 at 2.74%.

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Attention was focused on the Bank of England, which raised its benchmark rate by 75 basis points, as expected. However, policy makers revised down growth forecasts, anticipating that the recession will continue in the future. Policymakers now expect the British economy to contract by 1% in 2024, down from 0.25% at the previous meeting. In addition, UK Prime Minister Rishi Sunak and Chancellor Jeremy Hunt are said to be planning around £40bn of tax hikes over the next 5 years. The GBPUSD pair ended the day with heavy losses around 1.1160.

The recovery of the dollar stalled after the publication of US mixed data., with investors especially watching the tepid ISM services PMI, which fell to 54.4 in October, worse than expected. Wall Street trimmed most of its intraday losses, although all three major indexes closed in the red.

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The EURUSD pair hovers around 0.9750 after falling to 0.9729. Commodity-linked currencies extended their declines against the US dollar, with AUDUSD hovering around 0.6300 and USDCAD trading around 1.3740.

Gold flirted with a year low before now bouncing around $1,630 a troy ounce. Crude oil prices fell, with WTI trading at $88.20 a barrel.

On Friday, the United States will publish the October report Nonfarm payrolls. The country is expected to have added 200,000 new jobs in the month. The unemployment rate is forecast to rise from the current 3.5% to 3.6%.

Source: Fx Street

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