Here’s what you need to know to trade today Wednesday, November 1:
The US dollar (USD) remains relatively calm early on Wednesday after posting strong gains against their main rivals on Tuesday. ADP employment change data and ISM manufacturing PMI for October will be published on the US economic agenda, as well as the JOLTS job offers for September. Later in the session, The Federal Reserve (Fed) will announce its monetary policy decision and Chairman Jerome Powell will discuss the outlook at a news conference.
After opening lower, Wall Street’s major indexes gained traction and posted modest gains on Tuesday. Despite the optimism, the dollar remained firm amid rising US Treasury yields. Furthermore, the month-end monetary flows on the last day of October gave an additional boost to the currency. He DXY Dollar Index rose more than 0.5% and erased Monday’s losses before entering a consolidation phase above 106.50 on Wednesday. Meanwhile, US stock index futures traded slightly lower, while the 10-year yield fluctuated in a narrow range around 4.9%.
Dollar Quote this week
The following table shows the percentage change of the United States Dollar (USD) against the main currencies this week.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.10% | -0.28% | 0.08% | 0.00% | 1.04% | -0.13% | 0.75% | |
| EUR | 0.09% | -0.18% | 0.17% | 0.10% | 1.13% | -0.04% | 0.84% | |
| GBP | 0.28% | 0.18% | 0.32% | 0.26% | 1.31% | 0.13% | 1.03% | |
| CAD | -0.05% | -0.17% | -0.35% | -0.07% | 0.96% | -0.21% | 0.67% | |
| AUD | 0.00% | -0.08% | -0.26% | 0.06% | 1.05% | -0.13% | 0.77% | |
| JPY | -1.05% | -1.15% | -1.24% | -1.00% | -1.06% | -1.19% | -0.28% | |
| NZD | 0.15% | 0.03% | -0.16% | 0.21% | 0.11% | 1.17% | 0.88% | |
| CHF | -0.75% | -0.84% | -1.03% | -0.68% | -0.75% | 0.30% | -0.88% |
The heat map shows the percentage changes of the major currencies against each other. The base currency is chosen in the left column, while the quote currency is chosen in the top row. For example, if you choose the euro in the left column and scroll down the horizontal line to the Japanese yen, the percentage change that appears in the box will represent EUR (base)/JPY (quote).
The Fed is expected to keep its interest rate at 5.25%-5.5% for the second consecutive meeting. The statement on the prospects for further tightening and Chairman Powell’s comments on the outlook for monetary policy could increase volatility during the American session.
After reaching a weekly high above 1.0650, the EUR/USD It reversed its trend and closed on Tuesday in negative territory below 1.0600. At the time of writing, the pair is moving sideways slightly above 1.0550.
New Zealand data showed employment change fell 0.2% in the third quarter. This reading followed the 1% growth recorded in the second quarter and was worse than the market forecast of a 0.4% increase. For its part, China’s Caixin manufacturing PMI fell to 49.5 in October from 50.6 in September. The pair NZD/USD came under bearish pressure and retreated to the 0.5800 area following the release of this disappointing data.
He GBP/USD turned lower and erased its daily gains after meeting resistance at 1.2200 on Tuesday. The pair remains stable around 1.2150 early on Wednesday.
He USD/JPY gained bullish momentum amid policy inaction from the Bank of Japan and hit its highest level in a year above 151.70 on Tuesday. During the Asian session on Wednesday, Japan’s top currency diplomat, Masato Kanda, stated that they were concerned about unilateral sharp movements in currency markets and reiterated that they will not rule out any measure to respond. Following this verbal intervention, the pair fell below 151.50.
The price of Gold It surpassed $2,000 on Tuesday, but profit-taking appears to have triggered a sharp decline. XAU/USD is now moving erratically near $1,980.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
