Here’s what you need to know to trade today Thursday October 26:
Markets remain on edge, with safe-haven monetary flows dominating market action on Thursday as geopolitical tensions escalate. He European Central Bank (ECB) will announce its monetary policy decision later in the day, and its president, Christine Lagarde, will speak about the outlook for monetary policy and answer questions at the press conference after the meeting. The US economic agenda will include the first estimate of the Gross Domestic Product (GDP) for the third quarterSeptember Durable Goods Orders, and Weekly Initial Jobless Claims.
Israel intensified attacks in Gaza and Prime Minister Benjamin Netanyahu declared late Wednesday that the air assault was “just the beginning“, as they were preparing for a land incursion into the region. Reflecting the risk aversion in the markets, US stock index futures lost between 0.3% and 1.25% on the day.
Meanwhile, the US Dollar Index DXY remains in positive territory above 106.50 after posting gains for the second day in a row on Wednesday, while the 10-year US Treasury yield remains comfortably above 4.9%. The US economy is expected to grow at an annual rate of 4.2% in the third quarter.
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 | 0.38% | 0.60% | 0.67% | 0.15% | 0.34% | 0.44% | 0.53% | |
| EUR | -0.38% | 0.23% | 0.29% | -0.23% | -0.04% | 0.07% | 0.19% | |
| GBP | -0.59% | -0.23% | 0.08% | -0.46% | -0.25% | -0.16% | -0.05% | |
| CAD | -0.67% | -0.29% | -0.09% | -0.53% | -0.34% | -0.25% | -0.10% | |
| AUD | -0.15% | 0.25% | 0.47% | 0.53% | 0.19% | 0.27% | 0.42% | |
| JPY | -0.31% | 0.05% | 0.26% | 0.35% | -0.21% | 0.11% | 0.22% | |
| NZD | -0.44% | -0.06% | 0.18% | 0.25% | -0.27% | -0.09% | 0.14% | |
| CHF | -0.56% | -0.18% | 0.04% | 0.11% | -0.42% | -0.21% | -0.11% |
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).
See: Q3 US Gross Domestic Product Preview: When is the preliminary GDP report released and how could it affect EUR/USD?
In general, ECB expected to keep rates unchanged key after the October monetary policy meeting. Market participants will pay close attention to the language of the statement and Lagarde’s comments, given the loss of momentum in European economic activity and growing concerns about the uncertainty surrounding the outlook for growth and inflation. Pending the ECB event, the EUR/USD remains relatively calm around 1.0550.
See: European Central Bank Preview: ECB expected to keep rates unchanged for the first time in the current monetary policy tightening cycle
See: European Central Bank Preview: EUR/USD Could Fall Sharply as Markets Ignore a “Hardline Pause”
He USD/JPY It broke above its horizontal range and rose to its highest level in a year above 150.50 on Thursday. The pair, however, lost almost 100 pips in a matter of minutes after touching 150.80, which points to a possible intervention in the foreign exchange market by the Bank of Japan. Earlier in the day, Japanese Prime Minister Fumio Kishida stated that intervention in the foreign exchange market does not contradict the policy of diverting money from savings to investment.
He GBP/USD It closed in negative territory on Wednesday and on Thursday it continued downward during the Asian session. At the time of writing, the pair is trading negative slightly below 1.2100.
The price of Gold has benefited from strong safe haven demand and has risen to the $1,990 area early on Thursday.
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.
