The sell-off of a large part of the “Trump trade” hurt the US dollar at the start of the week amid marginal developments in US yields and growing caution ahead of Tuesday’s US election and the FOMC meeting of the Thursday.
Here’s what you need to know on Tuesday, November 5:
The US Dollar Index (DXY) broke below 104.00 support and hit fresh two-week lows amid growing caution ahead of Tuesday’s US election. Next on the US economic agenda will be the ISM Services PMI, the final S&P Global Services PMI and the API’s weekly report on US crude oil inventories.
EUR/USD advanced beyond the 1.0900 barrier, although that initial momentum faded by the close of the North American session on Monday. Lagarde and Schnabel of the ECB are expected to speak.
GBP/USD added to Friday’s rally on the back of dollar weakness, although the spot faltered just before the key 1.3000 milestone. Retail sales monitor from BRC is expected, followed by new car sales and final services PMI from S&P Global.
USD/JPY traded with marked losses, declining to retest the 200-day SMA in the 151.50 area. Next on the Japanese calendar will be the release of BoJ minutes and Jibun Bank’s final services PMI on October 6.
AUD/USD rose to multi-day peaks and reclaimed the 0.6600 barrier and beyond, settling just below the 200-day SMA. The RBA’s interest rate decision will be the focus of attention in Australia.
In a fairly promising start to the week, WTI prices rose beyond the $71.00 per barrel mark, or two-week highs, following OPEC+’s decision to postpone its planned oil production increases in December.
Gold prices rose modestly and remained near the $2,750 per troy ounce mark following the bid in the US Dollar as well as the lack of direction in US yields. The same performance saw gold prices Silver reversed three consecutive daily declines and approached the key mark of $33.00 per ounce.
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.
