This is what you need to know to trade today Wednesday, November 2:
While the United States Federal Reserve prepares to announce its interest rate decision at 18:00 GMT, markets remain relatively calm with investors moving on the sidelines. The FOMC Chairman’s press conference, Jerome Powell, will be closely watched by market participants amid expectations of a possible sign of a smaller rate hike in December. Ahead of the Fed’s major event, ADP’s private sector employment report will feature on the US economic docket. During the European session, the German agency Destatis will publish data on the unemployment rate for October.
See: Federal Reserve Preview: Buying Opportunity for the Dollar? Why Powell Is Unlikely To Consolidate A Twist
The Fed is expected raise your interest rate by 75 basis points (bp) after the two-day monetary policy meeting. On Tuesday, US data showed an unexpected increase in JOLTS job openings in September and the ISM reported that manufacturing activity continued to expand in October with the manufacturing PMI coming in at 50.2. Positive US data helped the dollar find demand and the DXY dollar index, which fell to a daily low of 110.70, ended up closing the day flat above 111.00. Meanwhile, the 10-year US Treasury bond yield rallied above 4% late on Tuesday before entering a consolidation phase on Wednesday. Meanwhile, US stock index futures are trading flat in early morning trading in Europe, reflecting market caution.
See: Fed November Forecast: Time for a dovish signal?
The EUR/USD It fell below 0.9900 during the American session on Tuesday, but managed to limit its losses. Bundesbank President Joachim Nagel told a German newspaper that the European Central Bank (ECB) had a long way to go on rate hikes and said they could start winding down the bond portfolio in early 2023. As of early Wednesday, the pair trades in a relatively tight range, slightly below 0.9900.
The GBP/USD closed flat near 1.1500 on Tuesday and continues to fluctuate around this level early on Wednesday. There will be no major macro data out of the UK and the dollar’s market valuation is likely to boost the pair’s action.
The USD/JPY trades in negative territory near 147.50 on Wednesday despite the latest comments from Bank of Japan Governor Haruhiko Kuroda. Kuroda said that there was no need to change the easing policy nor to adjust the control of the yield curve.
The Prayed took advantage of falling US Treasury yields on Tuesday and posted strong daily gains before entering a consolidation phase above $1,650 on Wednesday.
The Bitcoin it struggles to make a decisive move in either direction and is trading sideways above $20,000 for the third day in a row on Wednesday. The ethereum continues its sideways move around $1,500 as investors refrain from making big bets ahead of the Fed’s monetary policy announcement.
Source: Fx Street